UNIVERSITY  OF  CALIFORNIA 
AT    LOS  ANGELES 


CAMBRIDGE    NAVAL   AND    MILITARY    SERIES 

General  Editors— ]\si.ihti  S.  Corbett,  LL.M.,  F.S.A. 
H.  J.  Edwards,  C.B.,  M.A. 


OCEAN    TRADE    AND    SHIPPING 


CAMBRIDGE   UNIVERSITY    PRESS 

ILonDon:   FETTER   LANE.   E.G. 

C.   F.   CLAY,   Manager 


euinburflfj:    loo,  PRINCES  STREET 

ficrlin:   A.  ASHER  AND  CO. 

Urijjiifl:   F.   A.    BROCKHAUS 

f.tto  gork:   G.   P.    PUTNAM'S  SONS 

ISombng  anri  Calcutta :   MACMILLAN  AND  CO.,   Ltd. 

Toronto:   J.  M.  DENT  AND  SONS,  Ltd. 

JTohgo:   THE  MARUZEN-KABUSHIKI-KAISHA 


All  rights  reservca 


OCEAN     TRADE    AND 
SHIPPING 


by 
DOUGLAS   OWEN 

Barrister  at  Law 

Lecturer  at  the  Royal   Naval  War  College  and   to  the 

Army  Class,  The  London  School  of  Economics  and   Political  Science 

(University  of  London) 

Formerly  Secretary  of  the  Alliance  Marine  Assurance  Co.  Ltd. 

Author  of  Ports  and  Docks 


Cambridge : 

at  the  University   Press 

1914 


Cambtiljgt: 

TRINTED    BY   JOHN    CLAY,    M.A. 
AT   THE    UNIVERSITY    PRESS 


-i 
(2 

-7 


He 

PREFACE 


o 


UNDER  the  general  and  very  comprehensive  head  of  Ocean 
Trade   and    Shipping   come   a   whole   host   of  separate 
industries  and  undertakings.     Many  of  these,  and  of  the  rights 
and  liabilities  connected  with  them,  have  long  been  the  subject 
of  important  treatises.     To  others  of  them,  special    reference 
^  may  be  found  scattered  in  business  publications  here  and  there. 
OT  In  the  case  of  many,  however,  it  would  be  difficult  to  find  treat- 
,o  ment  of  them  anywhere.    The  whole,  collectively,  have  apparently 
^'  never  been  dealt  with  at  all.     And  indeed  to  supply,  in  a  single 
^  small  volume,  a  summary  of  enterprises  so  many  and  so  various 
must  needs  be  a  somewhat  courageous  undertaking.     Still,  by 
a  process  of  selection,  elimination  and  condensation,  and  with  the 
kind  and  valuable  aid  of  many  expert  business  friends,  I  hav^e 
done  my  best.     It  is  of  course  an  explanatory  work,  proceeding 
on  broad  lines,  rather  than  a  technical  treatise.     It  does,  however, 
::'as  I  hope,  deal  with  many  if  not  most  of  the  subjects  on  which 
^information  will  be  useful  or  at  any  rate  instructive  to  the  naval 
^and  military  officers  for  whom  it  is  primarily  intended.     If  this 
s^  should  prove  so,  I  shall  be  content. 

To  army  officers,  a  knowledge  of  the  machinery  of  shipping 
and  its  working  must  at  the  least  be  interesting,  seeing  that  the 
transfer  and  maintenance  of  oversea  forces  involve  its  constant 
use,  while  in  the  event  of  war  sea  transport  becomes  for  an 
imperial  Power  a  military  factor  of  the  first  importance. 

Naval  officers,  on  their  part,  are  brought,  in  the  exercise  of  their 
profession,  into  frequent  contact  with  oversea  trade.  Not  only 
does  this  occur  in  making  arrangements  for  the  supply  of  fleets 
and  naval  bases,  but  what  is  a  more  vital  consideration,  naval 
warfare  has  long  been  closely  identified  with  the  attack  on  and 
defence  of  commerce.  Much  has  been  written  and  is  constantly 
being  written  on  this  aspect  of  the  subject ;  but  while  such  writings 


293031 


vi  PREFACE 

usually  assiinic  on  the  part  of  naval  officers  a  practical  acquaint- 
ance with  trading  methods,  knowledge  of  this  kind  is  almost  of 
necessity  beyond  the  scope  or  opportunities  of  most  of  them. 
None  the  less,  the  arduous  and  highly  responsible  duties  involved 
by  hostilities  affecting  ocean  commerce  require  almost  as  their 
foundation  just  such  knowledge.  Not  only  do  the  system  and 
methods  of  ocean  trading  in  times  of  peace  need  a  proper 
understanding,  but  inasmuch  as  the  outbreak  of  war  gives  rise 
to  new  conditions  and  imposes  on  traders  special  obligations, 
these  also  should   be  understood. 

Therefore,  to  my  summary  of  the  process  of  ocean  trade  and 
of  the  methods  of  ocean  traders  in  times  of  peace,  I  have  added 
some  reflections  on  the  situation  which  may  be  expected  to 
arise  on  the  sudden  outbreak  of  war  and  during  the  progress 
of  the  subsequent  hostilities.  And  more  especially  I  have 
endeavoured  to  review  the  obligations  of  neutral  masters  as 
regards  the  papers  then  to  be  carried  by  them  and  the  informa- 
tion which  they  must  be  ready  to  afford  on  lawful  demand  of 
belligerent  naval  officers. 

In  the  by-gone  days  of  prolonged  hostilities  at  sea  the 
obligations  of  neutral  carriers  were  well  enough  understood,  but 
since  then  not  only  have  the  laws  of  maritime  warfare  thenfiselves 
been  modified  to  the  advantage  of  the  neutral  flag,  but  altered 
conditions  of  ocean  communication,  of  trade  and  of  finance 
have  materially  affected  the  data  which  so  frequently  served  as 
foundation  for  the  old-time  Prize  Court  judgments.  The  subject 
generally  involves  problems  of  no  small  importance — problems 
of  which  the  solution  is  not  for  an  occasion  such  as  this.  They 
must,  however,  be  some  day  dealt  with,  and  to  indicate  such  as 
have  suggested  themselves  may  serve  at  any  rate  as  a  first  step 
on  the  road. 

D.  O. 

9   WlLBRAHAM    PKACK,    .S.W. 

February^   1914- 


CONTENTS 
I 

PAGE 

International  Trade ,        .  i 

Ports 6 

Ship  and  Port ii 

The  Battles  of  the  Ports 12 

Ports  and  the  Passenger  Factor 14 

Ports  and  their  Income 16 

Dock  Management 18 

Port  Systems 19 

Closed  Docks  . 20 

Tidal  or  Open  Docks 22 

Open  Quays  or  Jetties 23 

Land  Ports  and  Water  Ports 23 

Barge  Canals  :   British  and  Continental    ...  25 

Navigable  Channels  and  the  Tides       ....  28 

II 

Ships  :  Ownership  and  Registration     ....  33 

Tonnage  Measurement 34 

Official  Ton  and  Conventional  Ton     •         •         •        •  35 

The  Official  Board  of  Trade  Measurement         .        .  36 

Gross  Register  Tonnage 37 

Net  Register  Tonnage -i)! 

Shelter  Decks 38 

Special  Designs  of  Construction 39 

Deductions  from  the  Gross  Tonnage  ....  40 

Freeboard  :  Loadline 41 

Carrying  Capacity 45 

Shore  Clearance 46 

"Big  Ships,  Cheap  Ships" 48 

Main  Routes  of  Shipping 51 

Giant  Shipping  Companies 53 

Atlantic  "Combine" 57 


Vlll 


CONTENTS 


Shipping  Rings  and  "Deferred  Rebates" 

"Liners" 

"Tramps" 

Coastwise  Traffic 

The  Sailing  Ship 

Charterparty 

Hill  of  Lading 

Seaworthiness 

Ship-Brokers 

Voyages  under  Charter 

Calling  for  Orders 
Rates  of  Freight 
Cost  of  Ship  Insurance 
Collision,  etc.  Liabilities 


TAGK 

62 
68 
70 
72 
75 

n 

81 

85 
88 

91 
93 
95 
96 

ICXJ 


III 

Lloyd's 

Lloyd'' s  as  a  News  Centre :  Lloyd^s  Agents 

The  Indexes 

Lloyds  as  an  Insurance  Centre    . 

The  Process  of  Insuring 

The  Marine  Insurance  Broker 

Lloyd's  Register 

International  Signal  Code 

The  Baltic 

Average  Adjusters      .... 
Institute  of  London  Underwriters 
Wrecks  and  Salvage  .... 
Salv.\ge  Distribution 
Salvage  

Property  salved      .... 

Salvage  award  .... 
General  Average  .... 
General  Average  Bond 

Bottomry  Bond     

Lloyd's  Policy 

The  Payment  of  Losses  and  Averages 

Insurance  of  Ship 

"P.P.I."  Insurances:   Honour  Policies 

Over-Insurance 

Freight 

Goods  Insurance  


112 

115 
116 
116 
117 
118 
121 
127 
128 
131 
^11 
134 
138 
140 
140 
141 

143 
150 
152 
155 
159 
161 
168 
170 
171 
171 


CONTENTS 


IX 


IV 

PAGE 

The  Export  of  Merchandise 175 

The  Import  of  Merchandise 181 

"Trading  with  the  Enemy" 186 

Trade  in  Contraband  Goods 189 

Trading  Contracts  and  War 192 

Insurance  of  Enemy  Property 195 

Insurance  of  War  Risks 196 

Cargo 197 

Ship 200 

Shipping  and  Hostilities .  205 

Position  of  the  Shipowners 208 

Shipping  generally 208 

When  War  breaks  out 209 

During  subsequent  Progress  of  Hostilities  .         .        .212 

Sailing  under  Convoy 213 

National  Guarantee:  National  Insurance:  National 

Indemnity 216 


Ships'  Papers  in  War 
The  Bill  of  Lading     .... 
Bills  of  Lading:  "Captains'  Copies" 
Industrial  Goods  and  Raw  Material 
Ships  "For  Orders"    .... 

Manifest 

Invoices 

Summary  respecting  Cargo  Documents 
Ship.     The  Register         .... 

Safe-Conduct  Pass  :   Certificate     . 

License  to  Trade    .... 

The  National  Flag 

The  Articles 

The  Log  ..... 

Certificates  of  Ships'  Officers 
"Corroborative  Papers"   . 

Clearance         ..... 

Bill  of  Health        .... 

Chart       ...... 

Charterparty  . 

Captaiiis  Instructions    . 

Passenger  List       .... 

Postal  Correspondence    . 

Index   


223 
229 
232 
234 
237 
239 
244 
245 
247 

249 
251 

25s 
256 
257 
259 
260 
262 
263 
264 
265 
266 
266 
267 

270 


ILLUSTRATIONS 

Facing  page 
A  New  Mapp  of  the  Roads  of  England  1680        ...         8 

Lloyd's.     Sounding  the  "  Lutine "  bell n6 

Lloyd's  Register.     Main  Entrance 122 

The  Baltic  ;   views  of  "  The  Floor " 128 

Lloyd's.     Telegrams  of  a  disaster  ;  underwriters  at  the  news- 
screen         137 

Bill  of  Lading 
Charterparty 


V in  pocket  at  end 


The  illustrations  facing  pp.  116  and  137  are  reproduced,  by  permission, 
from  The  Illustrated  London  News  ;  that  facing  p.  122  is  from  a  photograph 
kindly  lent  by  "The  Book  Committee";  that  facing  p.  128  from  pictures 
kindly  lent  by  "  The  Baltic  "  ;  the  map  is  reproduced  from  a  photograph  by 
Mr  Donald  Macbeth. 


CHAPTER    I 

International  Trade 

Before  considering  the  working  factors  in  ocean  trade  and 
shipping  it  may  not  be  amiss  if  as  a  preHminary  we  ask  ourselves 
what  we  understand  by  Trade.  We  may  take  a  broad  view  of 
it,  or  a  narrow.  But  inasmuch  as  the  factors  referred  to  are, 
after  all,  but  the  cogs  and  wheels  of  a  vast  and  beneficent 
machine,  we  may  fitly  place  before  us  this  machinery  as  a  whole 
and  consider  first  its  object  and  its  work.  This  will  give  us  the 
broad  view  with  which,  it  is  submitted,  we  should  start,  and  leave 
it  to  us  then  to  study  details. 

Traders  fall,  of  course,  within  many  categories,  but,  whatever 
the  category,  we  are  apt  to  group  them  :  to  regard  them  in 
passing  merely  or  mainly  as  separate  members  of  a  community 
seeking,  each  in  their  place,  to  support  or  enrich  themselves  by 
trade — just  as,  for  example,  the  lawyer,  the  doctor  and  the 
engineer  as  individuals  carry  on  their  several  professions  pri- 
marily for  the  income  to  be  gained  from  them.  But  without 
the  trader,  the  international  trader,  the  scope  of  the  beneficial 
labours  of  the  others  would  be  greatly  minimised.  For  it  is  the 
trader  who  creates  the  prosperity  of  an  industrial  community,  and 
on  his  prosperity  are  mainly  founded  the  others'  opportunities. 
It  is  trade  which  builds  up  the  nation's  wealth,  and  wealth  is,  or, 
rightly  handled,  should  be,  the  essential  source  of  national 
strength  and  greatness.  It  was,  no  doubt,  the  splendid  discipline 
and  organisation  and  self-sacrifice  of  the  Germans  which,  as  the 
result  of  their  victorious  campaign,  made  their  united  nation 
great ;  but  this  was  only  a  first  step.  The  prestige  and  greatness 
which  the  nation  has  since  built  up  sprang  from  the  people's 
industrial  awakening.  The  country's  ever-expanding  trade  and  the 
o.  I 


2  INTERNATIONAL   TRADE 

profitable  employment  due  to  it.  arresting  emigration,  have  in 
a  generation  added  almost  incredibly  to  the  population.  With 
the  increase  of  the  nation's  trade  have  come  increased  population, 
increased  wealth,  increased  naval  and  militar)'  strength.  The 
Germans,  thanks  to  their  enterprise,  their  organisation  and  their 
abilities  have  become,  indeed,  like  us,  "a  nation  of  shopkeepers," 
a  description  once  of  scorn  but  one  which  every  nation  now 
desires  to  earn.  All  the  world  has  come  to  realise  that  shop- 
keeping,  trading,  is  full  of  the  highest  possibilities,  and  trade 
accordingly  has  become  the  chief  aim  of  every  state. 

The  desire  for  trade  or  for  its  opportunit)-  has  become  indeed 
the  most  potent  cause  for  war.  The  wars  of  modern  history, 
when  we  look  below  the  surface,  have  all  of  them,  with  one 
exception,  had  trading  influences  at  the  back  of  them.  An 
industrial  state's  ability  to  enrich  itself  by  trade  is  limited  by  its 
opportunities  to  bring  its  output  to  a  market.  Foreign  markets, 
then,  are  all-essential.  The  loss  or  possibility  of  loss  of  such  an 
outlet  is  regarded,  consequently,  as  a  national  disaster,  to  be 
averted  at  all  costs,  even  at  the  cost  of  war ;  while  the  trade 
boycott  has  been  invented  as  a  potent  argument.  New  oversea 
possessions  are  bargained  for,  schemed  for,  fought  for :  as 
colonial  or  imperial  possessions  they  will  provide  a  favoured 
market,  and  a  new  source  of  raw  material.  Further,  they  may 
serve  as  an  off-swarming  ground  for  a  population  which  has  over- 
taken the  national  power  to  produce  and  sell  ;  for  the  limits 
of  sale  impose  of  course  the  limits  of  production.  But  while 
increase  of  population  is  both  the  result  and  the  evidence  of 
increased  national  prosperity,  it  is  none  the  less,  in  the  case  of 
an  industrial  state,  the  cause  of  serious  anxiety.  Says  the 
German  economist,  Dr  Rohrbach,  writing  on  the  increasing  food 
problem  created  by  the  increasing  German  population  :  "  For 
Germany,  all  questions  of  foreign  politics  must  be  viewed  from 
the  standpoint  of  the  maintenance  and  creation  of  markets 
abroad,  and  especially  in  trans-oceanic  lands."  Meanwhile 
German  waste  lands  are  being  brought  under  the  plough, 
German  marshes  are  being  drained,  and  foreign-grown  foods  are 
being  taxed  to  stimulate  to  the  utmost  the  national  efforts  for 
home   production.     But    the  time    is   steadily    and    irresistibly 


INTERNATIONAL   TRADE  3 

advancing  when  for  Germany,  as  already  for  us,  food  supplies 
must  be  obtained  from  overseas  in  exchange  for  industrial 
productions.  And  the  belief  (whether  well  or  ill  founded)  that 
oversea  possessions  are,  as  national  markets,  of  peculiar  value, 
gains  ground  steadily. 

All  the  industrial  world  is  hungering  for  new  markets. 
Mr  Asquith,  speaking  at  Leeds  in  1900,  said  truly  that  "there 
is  not  now  an  inch  of  ground  in  any  one  of  the  international 
markets  for  which  we  are  not  fighting  with  all  our  available 
strength."  And  if  this  was  true  then  it  is  certainly  not  less  true 
now.  And  it  is  no  less  true  of  our  competitors  than  of  ourselves. 
Still,  while  we  must  all  fight,  there  is  room  for  all,  and  every 
nation  which  becomes  richer  and  more  prosperous  becomes  ipso 
facto  a  greater  potential  purchaser  of  the  goods  of  its  competitors. 
The  competition  of  Germany  in  our  oversea  markets  has  no 
doubt  put  our  manufacturers  on  their  mettle,  for  the  good  of  all 
the  world  ;  but  the  vast  increase  of  Germany's  prosperity  has 
added  enormously  to  the  vast  purchases  that  she  makes  of  us. 
It  is  well  to  remember  the  fact. 

To  turn  to  another  view  :  Trade  is  barter.  Much  in  the  same 
way  as  in  days  remote  the  flint  implement  or  weapon  or  the 
string  of  attractive  beads  was  bartered  for  salt  or  skins  or  sinews, 
so  to-day  does  a  nation  barter  or  exchange  its  manufactured 
goods  or  raw  materials  for  raw  materials  or  manufactured  goods. 
The  invention  of  money,  it  is  true,  has  in  civilised  countries  long 
displaced  payment  in  kind  as  between  individuals,  but  as  between 
nation  and  nation  barter  or  exchange  still  holds  sway  and  will 
for  all  time  do  so.  Goods  are  exchanged  for  goods.  All  the 
money  in  the  world  bears  but  an  insignificant  relation  to  the  value 
of  the  world's  trading  in  a  single  year.  The  total  annual  value 
of  our  own  trade  is,  for  example,  some  thirteen  hundred  millions, 
of  which  about  seven-twelfths  are  imports.  The  total  value  of  all 
the  gold  coin  in  the  country,  variously  estimated,  may  for  present 
purposes  be  assessed  at  about  150  millions.  Obviously,  then, 
our  imports  are  paid  for  by  our  exports,  the  excess  of  imports 
being  provided  for  more  especially  out  of  the  interest  due  to  us 
on  our  oversea  investments — this  interest,  again,  coming  to  us 
jTiainly  as  native  products. 

I — 2 


4  INTERNATIONAL   TRADE 

The  working  of  the  process  can  be  simply  illustrated  by  a 
common  instance,  though  in  most  cases  it  is  more  circuitous.    Say 
that  a  native  Indian  merchant  buys  up  local  produce  and  ships 
it  to  a  London  commission-merchant  to  be  sold.     The  shipper 
is  however  himself  an  importer  or  an  agent  for  local  dealers,  and 
at  about  the  same  time  that  he  is  shipping  his  hides  or  indigo 
to  the  London  merchant  he  is  ordering  through  the  same  firm 
Staffordshire  nail-rods  or  Manchester  prints.     He  gives  instruc- 
tions that  the  sale  proceeds  of  the  one  are  to  be  set  against  the 
purchase  of  the  other.     Or,  two  great  firms,  one  in  the  Ea.st,  the 
other  in  London,  are  in  close  and  confident  business  relation.s.   The 
Ea.stern  firm  sends  a  shipment  of,  say,  rice  to  the  London  firm 
and,  as  usual  between  them,  draws  a  bill — say  for  ;^iooo — on  the 
London  firm.     The  drawer  and  the  intended  acceptor  are  both 
favourably  known  on  the  Eastern  money  market,  and  the  bill  can 
be  sold  locally  under  discount  for  cash.     Let  us  assume  that  a 
local  money-dealer  thus  buys  it.     At  this  time  another  local  trader 
is  ordering,  say,  machinery  through  his  London  agents  to  the  cost 
of  ^looo.     He  goes  on  the  money  market  and  buys  the  bill 
drawn  by  the  local  shippers  on  their  London  friends,  and  sends 
this  with  his  order  for  the  machinery.     The  bill  having  been 
presented  and  accepted  is   then  as  good   as  money,  and  cash 
under  discount  can   be  obtained   for  it  on  the  London  money 
market.     Thus  the  rice  is,  in  effect,  e.xchanged  for  the  machinery. 
Or,  we  may  say,  the  sale  proceeds  of  the  rice  are  in  anticipation 
used  to  pay  for  the  machinery.     And  this  process  is,  in  principle, 
going  on  all  the  time  on  a  scale  incredibly  vast  and  at  every 
trading  centre  in  the  world.     Goods  are  exchanged  for  goods, 
with  bills  of  exchange  as  the  vehicle  of  the  transfer.     A  nation 
may  consist  of  individual  traders,  but  collectively  these  constitute 
a  world  of  trading  nations,  each  nation  a  trading  individuality; 
and  each,  while  apparently  selling  its  own  wares  to  the  others, 
is  in  reality  exchanging  or  bartering  them  for  the  others'  mer- 
chandise. 

When  the  world's  harvests  are  good  and  the  political  atmo- 
sphere is  cloudless  and  money  is  abundant,  then  the  industrial 
states  are  able  to  work  at  full  pressure,  and  there  are  work  and 
wages  for  all.     But  presently  comes,  for  one  reason  or  another, 


INTERNATIONAL   TRADE  5 

a  period  of  depression.  The  oversea  dealers  who  filled  their 
shelves  when  trade  was  buoyant,  find  themselves  over-stocked. 
No  fresh  orders  are  sent  to  the  manufacturers,  prices  droop,  losses 
are  sustained,  works  are  shut  down  or  put  on  half-time,  unem- 
ployment is  rampant  and  gloom  hangs  over  all  the  industries 
like  a  pall.  It  is  a  painful  and  striking  object-lesson  of  the 
meaning  of  the  loss  of  foreign  markets,  a  lesson  none  the  less 
striking  because  only  temporary.  But  these  periods  of  depres- 
sion have  their  uses.  They  educate  the  national  sympathies  for 
the  unemployed  and  suffering,  they  put  a  check  on  luxury, 
extravagance  and  waste,  and  they  spur  the  producers  to  invent 
economies  and  to  find  uses  for  their  by-products  or  their  waste, 
to  the  eventual  benefit  of  the  world  at  large,  a  medicine 
unpalatable  but  beneficial. 

Trade  stands  for  wealth  and  power,  but  it  is  a  means  to  an 
end  more  lofty.  For  it  must  at  all  costs  have  foreign  markets  ; 
and  in  this  nation-compelling  necessity  we  may  see  the  grip  of 
a  beneficent  and  all-powerful  hand.  For  there  are  supreme  laws 
to  be  fulfilled  :  the  law  that  the  earth  shall  be  replenished  and 
rendered  fruitful,  with  the  widest  distribution  of  its  increase ; 
the  law  that  the  human  race  shall  be  gradually  uplifted,  educated 
and  advanced  ;  and  the  world's  necessity  for  foreign  markets  is 
a  force  which  is  operating  steadily  and  irresistibly  to  this  end. 
Every  worker  is  a  cog  in  the  nation's  industrial  machine. 
Germany  was  the  first  to  see  that  if  this  machine  was  to  be 
brought  to  full  efficiency,  the  workers  must  be  rendered  intelli- 
gent by  education.  Education,  then,  was  made  compulsory  and 
free,  and  Germany's  reward  was  unmistakable.  The  result  was 
a  wide  following  of  the  Fatherland's  example.  Next,  it  began 
to  be  recognised  that  education  was  not  everything  :  the  workers, 
in  the  interests  of  the  national  competition,  as  well  as  of  its 
military  strength,  must  live  in  sanitary  surroundings  and  with 
careful  attention  to  the  children's  health.  Model  dwellings  and 
school  clinics,  then,  became  the  cry.  Of  course,  the  countless 
altruistic  labourers  in  the  interests  of  the  workers  and  their 
children  have  no  such  sordid  motives  to  impel  them,  but  none 
the  less  the  fact  remains  :  the  industrial  nations  have  grasped 
the  fact  that  whether  for  industrial  warfare  or  for  military  uses 


6  INTERNATIONAL   TRADE 

the  children  of  the  state  must  be  made  intelligent  and  kept  in 
health  and  strength.  The  international  struggles  for  world 
markets  are  a  civilising  and  uplifting  force.  The  struggles  are 
in  themselves,  however,  strenuous  and  unceasing.  The  weapons 
or  implements  to  be  used  may  be  peaceful  but  none  the  less  must 
they  be  carefully  selected  and  kept  keen.  And  they  are  many 
and  various  :  some  wielded  by  bankers  and  financiers,  some  by 
manufacturers  and  their  agents,  some  by  inland  carriers  ;  and 
some,  notably,  by  dock  and  harbour  authorities,  by  shipowners, 
merchants  and  others.  International  trade,  then,  being  essential 
to  a  nation's  welfare  and  prestige,  let  us  review  some  of  the 
trading  instruments  and  begin  with  our  shipping  ports. 

Ports 

We  mostly  take  our  ports  for  granted.  To  their  origin,  their 
special  uses,  their  advantages,  and  their  troubles  we  give  small 
thought.  But  to  know  something  of  these  assists  us  not  a  little 
in  any  consideration  of  the  incidents  of  ocean  trade.  It  may, 
perhaps,  have  struck  us  that  the  most  important  of  the  northern 
ports  lie  inland,  up  the  rivers.  If  so,  we  accept  it  as  natural 
that  this  should  be  so :  natural  that  a  port  should  be  established 
at  a  site  specially  selected  for  the  safety  and  convenience  of  the 
ships.  But  ships  go  to  where  a  trade  already  awaits  them  :  the 
sequence  is  first  the  town  or  city,  then  a  population  of  traders, 
then  the  ships  to  fetch  and  carry  for  them.  It  is  the  city  that 
grows  into  the  port.  The  city,  then,  has  first  to  be  accounted  for. 
And  here  we  have  to  go  back  to  prehistoric  times.  But  from 
the  earliest  days,  in  every  land,  was  trade ;  the  little  bands  of 
traders  with  their  packs,  their  slaves  or  porters,  or  in  Eastern 
lands  their  caravans.  There  were  land  traders  long  before  there 
were  ships  ;  and  when  the  ships  came,  for  ages  these  hugged  the 
shore  and  wintered  at  safe  ports.  For  long,  land  transport 
covered  the  world  with  a  network  of  trade-tracks,  along  which 
weapons,  ornaments  and  furs  were  laboriously  carried,  to  be 
bartered  for  the  precious  metals,  salt  and  local  wares.  Thus 
England,  we  may  be  sure,  had  trade-tracks  everywhere,  linked 
later  to  the  Continental  routes  by  primitive  craft  which  reluctantly 


PORTS  7 

dared  the  dangers  of  the  Channel  at  its  narrowest  part — where^ 
later,  Caesar  and  after  him  the  sturdy  Norman  ferried  over  their 
invading  armies,  by  oar  and  sail. 

Now,  in  very  early  days  the  inland  trade-routes  were  at  the 
mercy  of  impenetrable  forests,  of  deep-flowing  rivers  and  of 
wide-extending  marsh  in  low-lying  grounds,  the  rivers,  indeed, 
spreading  themselves  far  afield.  Consequently  the  traffickers 
had  necessarily  to  make  for  some  spot  at  which  the  river  could 
always  be  approached  and  at  which  it  could  be  forded.  When  the 
trade-routes  were  along  the  coast  they  would  have  to  be  directed 
inland  to  a  crossing  wherever  a  river  flowed  towards  the  sea. 
When  these  practicable  fords  were  far  apart  they  would  be  the 
converging  point  for  roads  from  various  directions.  At  such  a 
focus  a  hamlet  would  naturally  spring  up,  providing  food  and 
shelter  for  wayfarers,  the  spot  being  all  the  more  suitable  for 
habitations  inasmuch  as  the  little  population  would  be  sure  of  a 
constant  supply  of  water  and  fish-food.  As  the  traffic  increased 
the  hamlet  would  develop  into  a  town,  which  would  be  known 
by  the  name  of  its  ford.  Our  towns  still  bearing  "  ford  "  or 
"  verton  " — ford-ton — as  a  suffix  to  their  names  are  numerous  to 
this  day.  That  they  are  not  more  numerous  still  may  doubtless 
be  attributed  to  the  fact  that  the  Romans  and  the  Normans, 
recognising  the  strategic  advantages  of  many  an  ancient  ford  or 
ford-town,  there  established  fortified  camps  or  castles  to  com- 
mand them,  the  older  suffix  "  ford  "  eventually  being  superseded 
by  the  title  "  castrum,"  "  Chester,"  "  caster  "  or  "  castle,"  though 
of  course  not  all  such  strategic  points  were  necessarily  at  a  ford. 
Then,  again,  no  doubt  the  suffix  "ford"  was  often  changed 
to  "  bridge  "  on  such  a  distinction  being  later  conferred  upon  the 
crossing.  The  nearest  of  the  river  ford-towns  to  the  sea  would 
in  course  of  time  naturally  develop  into  a  port,  and  where  a 
river  afforded  sufficient  depth  the  port  would  grow  steadily  in 
importance.  Where  the  river  was  wide  and  deep  it  would 
probably  be  the  case  that  the  first  crossing  nearest  to  the  sea 
would  be  a  considerable  distance  inland,  so  that  this  point  of 
passage  would  necessarily  become  the  focus  of  many  roads  and 
therefore  probably  a  residential  centre  of  importance.  And  here 
we  have,  apparently,  the  history  of  the  determination — not  the 


8  PORTS 

selection — of  the  site  of  London,  as  well  as  of  many  another 
ancient  river  port.  A  glance  at  Seller's  old  1680  road-map  here 
inserted,  and  a  recollection  that  in  early  times  the  Thames 
overflowed  both  above  and  below  the  high  ground  from  which, 
on  the  north  side,  now  springs  London  Bridge,  will  show  how 
inevitable  was  the  London  crossing  and  how  wide  the  area  it 
served.  Between,  on  the  one  hand,  the  N.W.,  N.  and  N.E.,  and 
on  the  other  the  S.E.,  S.W.  and  S.,  all  the  traffic  was  obliged  to 
make  for  the  great  ford.  London,  the  "Hill-fort"  or  the 
"  Mill-fort  on  the  Pool,"  at  the  focus  of  roads  so  many  and  so 
important  was,  amongst  the  cities,  born  with  a  silver  spoon  in 
its  mouth.  It  was  "born  great,  achieved  greatness,  and  had 
greatness  thrust  upon  it."  But  it  was  because  the  river  was  an 
obstacle  to  land  routes  and  not  because  of  any  advantages  of  its 
own,  that  a  town  with,  presently,  a  fort  or  fortress  to  protect  it 
and  to  command  the  ford,  developed  on  its  banks  ;  and  probably 
centuries  elapsed  before  any  vessel  sailed  to  London  across  the 
sea.  When  the  city  had  become  a  centre  of  population,  the 
pasturage  fringing  the  tidal  marshes  became  a  valuable  asset. 
To  increase  the  city's  grazing  lands  great  training  walls  were 
constructed — when  or  by  whom  we  know  not — to  prevent  the 
river's  overflow.  The  result  was  to  lower  the  bottom  of  the 
navigable  channel  by  reason  of  the  scour  and  to  raise  the  high- 
water  level  by  reason  of  the  confinement  of  the  stream.  To-day 
sheep  crop  the  grass  on  what  formerly  was  ancient  marsh  or 
saltings,  while  the  high-tide  swells  and  flows  some  ten  feet  above 
the  level  of  the  grazing.  The  stock-owners,  indifferent  to  thoughts 
of  river  navigation,  were  the  first  and  greatest  of  those  who  did 
it  service. 

But  the  practicability  of  a  river  from  the  sea  is  only  one 
incident  in  the  success  of  a  river  port.  The  other  is  the  port's 
accessibility  from  the  land  :  and  our  ancient  map  shows  how 
remarkable,  in  this  respect,  were  the  advantages  of  London.  It 
was  the  very  hub,  with,  as  its  spokes,  trade-roads  reaching 
everywhere.  In  the  calm  waters  of  the  Mediterranean  it  was 
mainly  the  fishing  villages,  placed  at  sheltered  spots,  which 
marked  the  sites  for  future  ports — or,  rather,  for  such  port-sites 
as  offered  depth  enough  for  the  trading  ships.     When  once  the 


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Maps  1205  (2).     John  Seller;    A  new  mapp  of  the  Roads  of  England  1680 


PORTS  9 

possibilities  and  advantages  of  the  port  became  recognised  by 
the  inland  traffickers,  it  would  become  a  focus  for  the  roads. 
When  once  a  city  has  established  itself  as  a  port,  with  good 
access  and  good  safety  for  the  ships,  and  with  the  country's  roads 
converging  to  it,  the  port's  position  is  assured.  San  Francisco, 
for  example,  with  its  magnificent  shelter  and  depth  for  great 
ships  and  with  long  tracks  of  wide-spreading  railways  converging 
to  its  harbour,  may  be  shaken  down  again  and  again  by  earth- 
quake, may  be  swept  by  following  conflagrations  till  over  wide 
city  areas  nothing  remains,  may  be  ruined  and  still  destroyed, 
only  to  rise  again  more  resplendent  still — not  because  it  is 
a  residential  city,  not  because  it  is  situated  on  a  harbour : 
but  because  it  stands  at  a  spot  irrevocably  fixed  as  the  meeting 
point,  the  stepping-stone,  for  trade  of  ocean  and  of  continent. 
The  great  ocean  ports  are  the  world  ford-towns  of  to-day,  where 
the  ocean  ferry  and  the  rails  continue  inland  the  trade-routes 
from  land  to  land  :  the  city's  function  is  still  to  furnish,  where 
land  and  water  meet,  food  and  shelter  for  the  travellers  and  their 
wares. 

The  up-river  ports  possess  to-day  the  great  advantage  that 
they  place  the  ocean  ferry's  terminus  far  inland.  A  hundred  or 
a  thousand  miles  more  or  less  count  little  in  the  cost  of  ocean 
transport,  but  on  land  the  charges  grow  with  every  mile. 
Therefore,  the  further  inland  the  port  the  greater  the  cheapness 
for  the  area  of  its  distribution  and  collection.  On  the  other 
hand,  the  increasing  size  of  ships  is  a  constant  anxiety  to,  and 
ever-growing  burden  on,  the  port  in  its  maintenance  and  increase 
of  the  river's  depth.  The  burden  of  this  necessity  leads  some- 
times to  attempts  to  compromise  with  facts,  by  the  establishment 
of  deep-water  ports  as  adjuncts  at  or  near  the  river's  mouth — 
as  notably  at  Cuxhaven,  Avonmouth  and  Tilbury.  But  a  policy 
which  places  a  wide  gap  between  the  city  and  its  trade  accords 
but  ill  with  sound  principles  of  port  economy. 

In  early  days,  and  more  or  less  until  the  railways  came, 
London  had  many  rivals,  each  serving  a  hinterland  of  its  own, 
the  costliness  of  land  transport  from  a  distance  telling  in  favour 
of  out-ports  near  at  hand.  The  railway  on  its  coming  established 
between  London  and  the  out-ports'  areas  and   with  the  ports 


lo  PORTS 

themselves,  back  and  forth,  a  never-ceasing  stream  of  railway 
trucks  ;  and  with  this  new  departure  the  sun  set  on  the  prospects 
of  the  out-ports.  London  rose  to  her  full  height,  a  Briareus 
whose  arms  reached  over  all  the  kingdom.  England's  world- 
predominance  in  shipping,  too,  and  her  oversea  jDossessions 
made  London  the  trading  centre  of  the  world. 

Britain  has  many  ports,  but  while  each  of  them  has  a  special 
quality  of  its  own,  London  is  a  port  of  many  uses.  But  first 
and  foremost,  London  is  the  country's  market.  Thus  the  tea 
that  is  drunk  in  Liverpool  and  Glasgow  is  landed  and  sold  in 
London  and  thence  sent  even  to  the  city  ports  to  which  the 
steamers,  bringing  it  to  London,  may  be  ultimately  bound  for 
final  discharge  or  to  load  with  outward  cargoes.  The  tea-market 
— one  of  many  such — is  fixed  in  London,  with  all  its  little  army 
of  tasters,  blenders,  dealers.  Because  London  is  a  market,  it  is 
the  centre  of  the  country's  coastwise  shipping.  Being  also  the 
great  centre  of  sea-trade  which  it  is,  the  port  is  an  ocean  Clapham 
Junction  for  all  the  world,  fleets  of  short- voyage  steamers  being 
constantly  engaged  in  the  transfer  of  the  city's  imports  to 
continental  ports,  while  continental  wares  are  sent  to  London 
for  transhipment  far  and  wide.  Still,  London's  trade  is  more 
especially  in  its  imports. 

Liverpool,  a  giant  amongst  the  world's  great  ports,  is  running 
London  hard  :  but,  indeed,  for  the  modern  creation  of  an  ocean 
port  at  inland  Manchester  with  consequent  great  trade  diversion, 
Liverpool  would  by  this  time,  in  the  value  of  her  trade,  easily 
have  gone  ahead  of  London.  London's  total  trade  is,  roundly, 
on  the  1912  figures,  383  millions;  Liverpool's  7,yi^  millions; 
Manchester's  56  millions.  Manchester,  Southampton  and  Glasgow 
are  keen  rivals  for  the  rank  of  fourth  port  on  the  Kingdom's 
list,  with  Hull  an  easy  third.  Hull's  trade  is  80  millions,  a  wide 
gap  separating  Hull  from  London.  Liverpool  is,  however,  in 
the  value  of  its  trade,  essentially  a  port  for  exports.  Standing, 
so  to  say,  with  one  foot  in  the  sea  and  the  other  planted  amongst 
the  mills  and  works  and  factories  of  the  Midlands,  Liverpool  is 
their  conduit-pipe,  with  Manchester  as  a  rival,  for  the  raw 
materials  which  they  need  ;  but  more  especially  is  Liverpool,  for 
their  valuable  products,  a  port  of  shipment. 


THE   SHIP   AND   THE   PORT  ii 

Liverpool,  as  compared  with  London,  Bristol,  Hamburg  and 
Antwerp,  is  a  port  of  to-day.  The  discovery  of  America  and 
the  later  demand  for  slaves  for  the  plantations  gave  the  port  its 
opportunity,  in  successful  rivalry  with  Bristol.  Liverpool  took 
the  lead  of  all  the  ports  in  the  Guinea  and  American  trades,  and 
both  to  protect  such  trades  and  as  a  speculative  enterprise 
devoted  its  energies  also  to  privateering,  with  no  small  distinction. 
No  doubt  the  necessities  of  this  enterprise  resulted  in  the  evolu- 
tion of  vessels  built  for  speed  ;  and  keeping  firm  hold  of  the 
trades  mentioned,  the  city's  fortunes  rose  with  their  development 
and  prosperity.  To-day  Liverpool  is  still  the  great  port  for  the 
western  world,  while  its  magnificent  ships  are  keen  competitors 
wherever  elsewhere  freights  are  to  be  earned.  With  London  the 
docks  are  but  one  of  the  incidents  of  the  great  metropolis. 
Liverpool  is  centred  round  its  docks  and  shipping. 

Glasgow  owes  itself  to  the  optimistic  doggedness  and  per- 
severance of  its  people,  who  by  working  incessantly  at  their 
small  and  insignificant  river,  dredging,  embanking,  blasting, 
straightening,  and  widening,  eventually  made  it  what  it  is  to-day, 
the  home  and  cradle  of  mighty  vessels,  with  a  universal  renown 
for  ships  built  on  the  Clyde,  and  with  an  ocean  traffic  which  is 
the  envy  of  older  ports.  Glasgow,  like  Liverpool,  is  in  a  favoured 
position  amongst  the  great  cargo  ports — as  compared,  fior 
example,  with  London — owing  to  the  volume  of  her  export 
trade ;  for  a  port  which  can  supply  an  unladen  ship  with  an 
outward  cargo,  instead  of  sending  her  away  in  ballast  to  seek 
elsewhere,  is  a  port  which  appeals  to  owners. 

The  Ship  and  the  Port 

The  remark  that  shipowners  may  for  this  or  that  reason  look 
favourably  on  a  port  seems  to  call  for  a  word  of  comment.  The 
relation  between  the  ship  and  the  port  is  in  fact  apt  to  be  mis- 
apprehended. We  hear  it  said  sometimes,  for  example,  that  if 
a  port  pursues  or  does  not  pursue  a  certain  course,  the  ships 
will  refuse  to  come  to  it — as  if  the  trade  of  a  port  was  due  to 
the  favour  of  the  ships.  This,  of  course,  is  not  so.  A  ship  is 
the  blind  instrument  of  trade :  where  trade  calls  her,  there  she 


12  THE   SHIP   AND  THE    PORT 

will  go.  The  risks  or  dangers  of  a  certain  voyage,  the  incon- 
veniences or  expenses  of  a  certain  port  are,  in  a  sense,  quite 
immaterial  to  the  ship.  Her  business  is  to  go  wherever  she  is 
wanted,  without  regard  to  disadvantages — so  long  as  these  be 
paid  for.  l^roadly  stated,  it  is  all  a  question  of  rate  of  freight. 
A  shipowner  knows  or  is  supposed  to  know  what  are  the  draw- 
backs of  the  contract  offered  to  him,  and  he  charges  a  rate  of 
freight  which  will  protect  himself.  Whatever  the  dangers  or 
drawbacks  of  a  voyage  or  enterprise,  they  can  all  be  calculated 
in  pounds,  shillings  and  pence,  and  a  rate  of  freight  quoted  which 
will  cover  them.  Consequently  the  disadvantages  of  a  port  will 
never  drive  ships  away  and  so  bring  ruin  on  the  port,  as  was 
freely  said  in  respect  of  the  methods  of  the  London  dock 
companies  in  the  angry  controversies  which  raged  a  few  years 
ago,  and  of  which  the  ultimate  outcome  was  the  conversion  of  the 
company-owned  docks  into  a  public  trust  under  the  title  of  "  The 
Port  of  London  Authority."  No  doubt  a  shipowner  who  buys  his 
knowledge  of  a  port  at  the  cost  of  a  first  experience  is  sometimes 
greatly  chagrined  ;  but  he  will  know  better  next  time  and  will 
arrange  accordingly.  Still,  although  a  retrograde  policy  on  the 
part  of  a  port  will  never  '  drive  away '  the  ships,  the  result  of 
such  a  policy  may  none  the  less  react  upon  the  port.  For 
things  are  cut  very  fine  nowadays  in  trade  ;  alternative  routes 
are  being  more  and  more  provided  for  inland  manufacturers  ; 
and  an  additional  half-crown  on  the  freight  to  or  from  port  A 
may  result  in  diversion  of  a  manufacturer's  traflRc  to  port  B, 
better  managed. 

The  Battles  of  the  Ports 

With  ports,  as  with  most  things  else  in  this  world,  it  is  a 
question  of  the  survival  of  the  fittest.  But  whereas,  with  most 
things  else,  the  struggle  can  be  fought  out  inter  sc  without  the 
unlooked-for  birth  and  competition  of  new  rivals,  this  is  not  so 
with  the  ports.  For  any  day  it  may  dawn  upon  the  uneasy 
consciousness  of  this  or  that  competitor  in  the  general  struggle 
that  dangerous  new  conditions  are  arising  ;  that  some  ancient 
and  almost  forgotten  port  is  being  stirred  in   its  sleep  by  the 


THE   BATTLES   OF   THE    PORTS  13 

railway  whistle,  or  that  the  situation,  depth  or  convenience  of 
sonme  natural  harbour  is  appealing  to  some  great  railway 
enterprise  as  a  possible  meeting-point  between  the  traffic  of  the 
seas  and  the  company's  iron  road. 

Ports  vary,  of  course,  in  the  nature  of  their  employment. 
London,  for  example,  is  chiefly  a  port  of  imports  ;  Liverpool,  of 
exports  ;  Glasgow,  two-thirds  exports  ;  Cardiff,  in  weight,  mainly 
exports — coal  ;  Southampton,  essentially  a  port  of  call  for 
passenger  steamers,  but  with  a  growing  goods  traffic,  her  exports 
largely  from  the  Midlands.  Then  there  are  the  Channel  and 
other  near-by  coastal  ports,  which  are  essentially  supply-pipes 
for  London's  mighty  market.  These  latter  ports,  like  Southamp- 
ton, are  practically  parts  of  a  railway  system,  the  object  of  every 
railway  company  being  to  secure  a  share  of  the  ocean  transport 
for  its  own  rolling-stock.  Southampton  affords  a  notable 
instance  of  railway  enterprise,  while  the  great  new  port  of 
Immingham  on  the  south  bank  of  the  Humber,  a  few  miles 
above  Grimsby,  is  a  splendid  testimony  to  the  enterprise  of  the 
Great  Central  Company.  Immingham  is  primarily  for  coal 
shipment,  but  the  possibilities  of  the  port  are  very  great,  and 
disquieting  to  Hull  across  the  river,  a  few  miles  higher  up. 
Then  of  late  years,  in  competition  with  Liverpool  and  with 
Southampton  its  great  passenger  rival,  Holyhead  and  Fishguard 
have  become  calling-ports  for  Atlantic  liners.  The  railway 
companies'  thirst  for  ports  is  gradually  restoring  to  various 
ancient  ports  the  trade  of  their  hinterlands,  captured  long  ago 
by  London.  The  battles  of  the  ports  are,  indeed,  commonly 
only  another  name  for  the  rivalries  of  the  railways.  Between 
the  coastal  steamers  and  the  rails,  too,  the  rivalry  is  increasing, 
since  each  port  added  to  some  railway  system  means  keener 
competition  for  and  with  the  coastal  carriers.  Port  authorities, 
spurred  on  by  the  possibilities  offered  by  direct  rail  connexion 
with  great  industrial  centres,  pour  money  into  the  deepening  of 
harbour  channels  and  spread  it  on  extending  quays,  while  mile 
upon  mile  is  added  by  the  railway  company  to  the  sidings  at 
the  growing  port.  Thus  many  a  port  is  seeing  a  revival  of  its 
ancient  glories.  The  continental  ports  too,  with  the  birth  of 
their  national  industries,  have  cast  off  their  swaddling  clothes  and 


14  THE   BATTLES    OF   THE   PORTS 

now  trade  direct,  in  ships  British  or  their  own,  with  far  distant 
ports  for  which  London  was  once  accepted  as  the  ocean  Clapham 
Junction.  The  result  is  that  many  a  ship  which  formerly  brought 
her  cargo  to  the  Thames  for  our  own  manufactories  as  well  as 
for  transhipment  to  the  Continent,  now  sails  past  London  for  a 
port  on  the  north-east  coast  or  for  the  Continent.  The  great 
continental  ports,  indeed,  to  some  extent  are  now  serving  for  our 
British  merchants  and  manufacturers  the  part  which  for  long 
London  played,  and  still  is  playing,  for  traders  on  the  Continent. 
But  what  matter  to  London  ?  Population  at  or  near  the 
port  in  itself  goes  far  to  make  the  greatness  of  a  port ; 
and  any  loss  of  trade  to  London  owing  to  the  creation  of 
new  or  the  development  of  old  ports  is  more  than  made  good 
by  the  always  growing  demands  of  London's  own  population  and 
those  of  the  many  and  growing  cities  within  the  area  of  its 
supply.  More  and  more,  too,  the  great  metropolis  is  becoming, 
under  the  influence  of  electric  power  and  internal  combustion 
engines,  a  centre  for  the  industries.  Who  can  have  travelled  for 
the  last  decade  on  the  railways  serving  London  without  remarking 
how  steadily  these  lines,  outside  the  city's  area — and  rates — are 
being  fringed  with  manufactories  ?  The  city's  ocean  trade  may 
well  increase  !  And  if  population  is  an  important  factor  in  the 
making  of  a  port,  what  may  not  be  the  future  of  our  ports  ?  In 
1 82 1  the  population  of  the  British  Isles  was  21  millions.  To- 
day, in  19 14,  it  is  45  millions.  Why,  some  day,  should  it  not  be 
doubled  again  or  quadrupled  ?  Moreover,  every  new  worker  is 
a  new  cog  in  the  nation's  industrial  machinery,  a  new  source  of 
the  nation's  trade  and  wealth  and  strength — if  only  the  nation 
can  be  sure  of  markets  for  its  output. 

Ports  and  the  Passenger  Factor 

Once,  ocean  passengers  were  few.  The  world's  population 
was  small,  and  inland  communications  were  scant  and  costly  : 
the  port  of  arrival  was  the  end  of  the  voyage.  Now,  it  is  often 
but  the  beginning  of  the  voyage  :  the  end  of  the  sea-voyage,  the 
beginning  of  the  travel.  For  steam,  with  its  magic  wand,  has 
linked    up   countless    cities   to    the    arrival   port  :    ancient  and 


PORTS  AND  THE  PASSENGER  FACTOR   15 

entrancing  cities  in  the  East,  new  centres  of  trade  and  population 
in  the  West.  The  throb  and  shake  of  great  manufacturing  cities 
have  caused  the  skies  to  rain  money.  The  peoples  have  become 
wealthy,  and  with  wealth  have  come  education  and  the  desire  to 
travel.  Once,  ocean  passengers  were  few.  They  travelled  in  the 
cargo  ship  because  there  was  no  other,  and  they  sailed  to  cargo 
ports  because  there  were  no  other.  They  were  tolerated,  not 
catered  for,  and  were  tied  to  cargo's  heavy  wheels.  With  the 
altered  world-conditions  their  number  steadily  increased.  Enter- 
prising shipowners  awoke  to  the  fact  that,  just  as  literature 
makes  readers,  so  do  facilities  for  travel  make  travellers.  Nothing 
was  too  good  for  passengers  who  would  pay  for  it,  and  great 
steam  lines  set  to  work  in  rivalry  for  passengers.  These  were  no 
longer  tied  to  cargo's  wheel,  but  huge,  steam-propelled  hotels 
were  put  upon  the  seas  for  passengers,  and  for  such  privileged 
cargo  as  could  afford  to  travel  with  them.  The  ocean  passenger 
found  his  feet — his  hundreds  of  thousands  of  feet — and  began  to 
take  stock.  "  Why,"  he  murmured  to  himself,  "if  I  am  in  Berlin 
or  Paris  or  London  and  want  to  go  to  the  New  World,  should  I  be 
compelled  to  go  by  train  all  the  way  to  Liverpool,  only  to  come 
south  again  by  steamer?  Or  why  should  I,  homeward  bound,  be 
taken  out  of  my  way  to  Liverpool  only  to  be  brought  down  again 
by  rail  ?  "  The  great  White  Star  Company  caught  the  murmur 
and,  warmly  applauded  and  assisted  by  the  South-Western  Rail- 
way, brought  their  steamers  to  Southampton.  The  Great  Western 
Railway  saw  no  reason  why  a  rival  line  should  have  a  monopoly, 
and  set  to  work  to  adapt  Fishguard  to  uses  similar.  Holyhead, 
on  the  North-Western  line,  too,  was  stirred  to  action.  On  the 
Continent  the  same  influences  were  at  work.  Cherbourg,  Havre 
and  Bremen,  assisted  by  the  railways,  laid  themselves  out  to  attract 
the  ocean  passengers,  and  presently  travellers  had  a  wide  choice 
of  ports  of  sailing  or  arrival,  the  interests  of  cargo  taking  second 
place.  Still,  the  entire  space  of  a  ship  cannot  be  occupied  by 
human  cargo,  and  for  valuable  goods  which  could  afford  to  pay 
for  such  advantages,  the  speed  and  regularity  of  the  passenger 
liner  found  great  attractions.  Consequently  an  increasing 
amount  of  cargo  of  this  special  class  began  to  find  its  way  to 
the  passenger  ports,  greatly  to  their  advantage  and  that  of  the 


i6  PORTS   AND   THE    PASSENGER    FACTOR 

railways  linked  to  them.  Hut  cargo  cannot  be  all  at  once  shipped 
or  landed  at  a  new  port  without  first  being  taken  from  an  old 
one — any  more,  for  that  matter,  than  ocean  travellers  to  or  from 
a  port  can  change  their  route  without  prejudice  to  some  other 
railway  system.  Moreover,  the  great  ocean  steamers  carrying 
many  passengers  and  some  cargo  are  more  or  less  central  suns, 
having  coastal  or  short-voyage  steamers  as  their  satellites  ;  and  a 
port  cannot  lose  the  big  steamers  without  losing  some  of  the 
steamers  which  fetch  from  and  carry  to  them.  And  to  a  port 
which  has  spent  vast  sums  in  developments,  a  loss  of  tonnage- 
dues  must  be  disquieting.  The  port  struggles  for  the  ocean 
passenger  traffic  are  a  modern  development  of  which  the  effects, 
so  constantly  progressive,  are  by  no  means  without  interest. 

Port  Authorities  and  their  Income 

And  by  whom  are  our  various  ports  controlled  ;  or  who,  to 
use  the  common  parlance,  owns  them  ?  London,  until  a  few 
years  ago,  was  under  a  divided  authority,  the  docks  being 
privately  owned — that  is,  the  property  of  public  companies — the 
river  being  looked  after  by  the  Thames  Conservancy  and  the 
Trinity  House.  In  1909,  the  docks  were  taken  over  by  a  newly 
constituted  body  entitled  "  The  Port  of  London  Authority,"  to 
which  also  were  transferred  the  duties  devolving  upon  the 
Thames  Conservancy  in  the  Lower  Thames.  The  port  had  got, 
or  was  in  imminent  danger  of  getting,  into  a  bad  way  owing  to 
the  financial  predicament  of  the  dock  companies  through  altered 
conditions  for  which  the  companies  were  in  no  way  responsible. 
The  only  way  to  make  and  keep  the  port  up  to  date  was  by  the 
granting  of  statutory  powers  which  Parliament  thought  it  unwise 
to  confer  on  private  companies.  The  companies  were  therefore 
'bought  out'  just  as  the  Water  Companies  had  been,  and  their 
property  and  the  navigable  channel  were  handed  over  to  the  new 
Authority,  with  the  necessary  powers  to  levy  tolls  on  goods.  The 
members  of  the  Authority  are  unpaid,  except  in  the  case  of 
Chairmen  of  Committees.  The  Committee  are  partially  nominated 
by  the  Board  of  Trade  and  partly  elected  by  the  payers  of  port 
dues :    shipowners,  lightermen,   wharfingers   and    so    on.      The 


PORT   AUTHORITIES   AND   THEIR    INCOME     17 

Authority's  income  is  mainly  derived  from  tolls  on  imported  and 
exported  goods,  other  than  transhipped  goods,  and  from  tonnage 
dues  on  shipping.  The  income  is  devoted  to  port  improvements. 
This  has  long  been  the  situation  as  regards  Liverpool,  which 
is  similarly  controlled  by  the  Mersey  Docks  and  Harbour  Board  ; 
so  that  practically  the  two  great  ports  are  now  controlled  by 
Public  Trusts. 

Then,  some  of  the  ports  are  municipal — Bristol,  as  the 
rate-payers  are  well  aware,  a  notable  example.  It  may  be  a 
matter  of  legitimate  pride  to  a  municipality  to  own  its  own 
docks,  but  whether,  speaking  broadly  and  without  reference  to 
any  particular  port,  the  folk  who  ordinarily  constitute  a  Borough 
Council  are  the  best  qualified  to  manage  a  port  and  its  docks, 
is  another  question  altogether.  The  party  for  economy  may 
succeed  in  getting  the  port  starved  to-day,  only  to  involve  a 
huge  and  belated  expenditure  at  some  future  time ;  or  the  party 
for  improvement  may  decide  on  a  heavy  expenditure  out  of  the 
rates  without,  possibly,  fully  understanding  the  economics  of 
port  history. 

Then  come  the  railway-owned  ports — Southampton  and 
Immingham,  examples  out  of  many.  The  main  if  not  the  sole 
object  of  the  railway  companies  is  to  get  employment  for  their 
rolling-stock.  The  better  constructed  and  the  better  maintained 
their  port  the  greater  will  be  its  contribution  to  their  railway 
system.  Consequently,  no  money  is  likely  to  be  spared  to  make 
and  keep  the  port  effective.  Dock  rates  and  dues  will  be 
kept  low,  because  it  is  not  so  much,  if  at  all,  the  object  of  the 
company  to  make  money  out  of  the  port  facilities  as  to  make 
the  port  attractive  and  so  to  secure  the  goods  traffic,  and  perhaps 
the  passenger  traffic,  attaching  to  its  use.  A  railway-owned 
port  is  thus  very  much  on  the  footing  of  the  continental  port, 
which  may  be  constructed  and  owned  either  by  the  state  or  by 
the  city,  or  by  the  two  conjointly.  On  the  Continent  they 
regard  a  port  as  a  gateway  for  the  country's  trade,  and  the 
wider  open  the  gate,  and  the  smoother  the  road,  the  greater,  they 
consider,  will  be  the  trade-gain  to  the  country. 


o. 


i8  DOCK    MANAGEMENT 

Dock  Management 

As  regards  the  system  of  management,  this  will  no  doubt 
vary  more  or  less,  but  probably  under  the  governing  body, 
whatever  it  may  be,  will  be  the  manager  and  one  or  more 
superintendents  and  resident  engineers.  Then  after  them  come 
the  warehouse-keepers  who  have  to  engage  labour  and  to  try  to 
keep  clear  of  strikes.  Then  the  foremen,  the  dockmasters  and 
the  dock-police.  The  bonded  warehouses,  which  are  said  to  be 
"  under  the  King's  lock  ",  are  in  charge  of  Customs  officers. 

Then  as  regards  the  equipment,  there  will  of  course  be  the 
railway  lines  and  waggon  roads  and  the  cranes,  these  running 
on  their  own  rails  along  the  quays,  or  also,  as  notably  at 
Liverpool,  on  the  transit-buildings'  roofs.  Unless  the  cargo  is 
of  a  homogeneous  kind,  the  property  of  a  single  consignee,  it 
will  probably  have  to  be  discharged  into  transit-sheds  for  sorting 
to  marks  and  for  customs  inspection.  If  a  "bulk"  or  homo- 
geneous cargo,  as,  for  example,  seed  or  grain  or  cotton,  it  ma)- 
go  direct  into  the  railway  trucks,  or,  if  the  port  be  a  barge  port, 
direct  into  barges  alongside.  Grain  cargoes  in  bulk  are  dis- 
charged b)'  series  of  small  bucket  dredges  or  by  dredges  on  the 
"sand-sucker" — or  "vacuum  cleaner" — system,  the  discharge  on 
to  endless  bands  or  by  exhaust  pipes  into  silos  or  elevators  being 
a  matter  of  extraordinary  rapidity.  Miscellaneous  cargoes  have 
to  go  first  into  the  transit-sheds  for  inspection  and  sorting,  as 
stated,  prior  to  delivery  to  waggon,  truck,  or  barge.  If  to  be 
warehoused,  the  warehouses  ma}'  be  within  the  dock  or  elsewhere. 
In  London,  the  bulk  of  the  import  cargoes,  four-fifths  of  them, 
now  find  their  way  by  barge  to  one  of  the  riverside  wharves. 

When  the  London  docks  were  built,  pretty  nearly  everything 
paid  duty,  and  practically  the  whole  dock  area,  with  its  fortress 
walls  or  its  palisades  and  ditches,  was  under  the  King's  lock. 
With  the  abolition  of  duties  the  private  wharves  came  into 
active  competition  with  the  dock  warehouses,  and  this  it  was 
which  eventually  brought  upon  the  dock  companies  the  financial 
predicament  alread)'  mentioned. 

The  dock  transit-sheds  are  of  verj'  large  floor-area.  Originally 
the  idea  was  "  one  ship,  one  shed  ",  but  with  the  extraordinary 


PORT   SYSTEMS  19 

increase  in  the  size  of  ships,  "  one  ship,  three  sheds  "  has  become 
nearer  the  mark.  In  the  case  of  vessels  loading  outwards  on 
the  berth,  the  sheds  are  marked  off  for  each  port  to  be  taken  on 
the  voyage — as,  Perth,  Adelaide,  Melbourne,  Sydney,  Brisbane, 
Auckland,  etc.  Each  package  as  it  comes  in  is  then  marked 
with  a  dab  of  paint  of  a  distinctive  colour,  and  all  the  greens,  say, 
are  trucked  off  to  the  Perth  division,  the  reds  to  Adelaide,  and 
so  on,  each  colour  being  then  stowed  in  its  own  part  of  the  ship 
as  shown  on  the  vessel's  stowage-plan. 

Then,  if  the  docks  be  some  way  from  the  business  centre 
of  the  city,  up-town  warehouses  will  be  provided — in  London, 
at  Houndsditch  and  so  on,  with  frozen  meat  stores  at  West 
Smithfield  in  addition  to  the  docks'  own  refrigerated  stores. 

Further,  there  may  be  up-town  railway  depots,  at  which 
export  goods  are  delivered  for  or  from  the  docks  instead  of  being 
sent  by  road  or  river.  The  burden  of  fire  insurance  on  the 
dock  property  is  very  heavy,  and  the  fire  companies'  inspectors 
are  continually  visiting  the  sheds  and  warehouses  to  see  that 
the  utmost  precautions  are  taken  against  the  outbreak  or  spread 
of  fire.  Their  recommendations,  however  inconvenient,  are  sure 
of  prompt  attention. 


Port  Systems 

Whenever  new  proposals  are  made  for  port  extensions  or 
further  "  dock  "  accommodation,  there  is  pretty  sure  to  be  an 
ill-informed  clamour  for  the  introduction  or  adoption  of  some 
system  of  proved  success  elsewhere.  But  ports  vary  greatly  in 
all  their  circumstances,  and  as  a  general  rule  each  port  has 
successfully  evolved  the  particular  system  or  systems  best  suited 
to  its  own  requirements.  Now  there  are  three  separate  and 
•distinct  port  systems  over  and  above  the  simple  one  of  mooring 
a  vessel  in  the  stream  or  harbour  for  overside  discharge ;  and 
these  three  systems  are 

Closed  Docks, 

Open  or  Tidal  Docks, 

Open  Quays  or  Jetties. 

2 — 2 


20  PORT   SYSTEMS 

Sometimes  a  single  one  of  these  systems  may  be  adopted,  some- 
times several  of  them  in  conjunction. 

Closed  Docks 

The  object  of  this  system  is  of  course  to  impound  the  tidal 
water  at  high-tide  level.  The  greater  the  rise  and  fall  of  the 
tide,  the  greater  the  probability  of  adoption  of  the  closed  dock 
system.  London,  Liverpool  and  Bremerhafen  are  notable  illus- 
trations. Then  at  Antwerp,  where  the  rise  and  fall  are  consider- 
able, but  less  than  at  London,  the  closed  dock  system  and  the 
open  (river)  quay  system  go  hand  in  hand. 

Closed  docks  are  excavated,  in  the  dry,  to  the  depth  required 
for  the  loaded  ships  which  are  to  be  accommodated,  and  are  cut 
off  from  the  tidal  waters  by  a  lock,  with  a  lock-cut  at  such  length 
as  may  be  required  by  the  circumstances.  The  lock-cut  and  the 
lock  will  be  sunk  to  the  level  of  the  bottom  of  the  navigable 
channel.  Let  us  assume  (disregarding  safety  margins)  that  the 
ship  requires  a  floatage  of  30  ft.,  that  the  high-tide  depth  of  the 
navigable  channel  is  30  ft.  and  its  low-tide  depth  18  ft.  If  a 
ship  comes  up  just  on  the  top  of  high- water  the  river  surface  and 
the  dock  surface  will  be,  clearly,  at  one  and  the  same  level. 
The  lock  gates  and  dock  gates  can  then  be  left  wide  open  and 
the  ship  can  come  in  "  on  the  level ",  though  probably  this  will 
not  very  often  happen.  But  say  that  a  vessel  drawing  (still 
disregarding  safety  margins)  24  ft.  comes  up  at  half-tide.  There 
will  then  be  24  ft.  in  the  navigable  channel,  the  surface  of  which 
will  consequently  be  6  ft.  below  the  dock  level.  The  ship  will 
then  enter  the  lock,  the  outer  gates  will  be  closed  behind  her, 
and  the  lock  will  be  filled  to  the  dock  level  by  opening  the  dock 
sluices.  When  the  lock  is  full  to  the  dock  level,  the  dock  gates 
will  be  opened  and  the  ship  will  be  hauled  in — the  common  and 
well-known  process.  For  a  vessel  coming  out  the  process  will 
of  course  be  reversed.  Once  in  dock  the  vessel  will,  except  as 
she  discharges  or  takes  in  cargo,  be  always  at  one  and  the  same 
level,  and  out  of  danger  of  storms  and  tides  and  of  collisions,  of 
which  last,  in  a  foggy  river,  the  possibility  is  not  to  be  ignored. 
Moreover,  she  need  not  fear  finding  herself  on  the  ground  owing 


PORT   SYSTEMS  21 

to  the  operation  of  some  abnormal  tide ;  and  tides,  at  times,  are 
guilty  of  vagaries  quite  unaccountable.  And,  to  the  owner  of 
a  huge  modern  vessel,  the  idea  of  his  costly  and,  in  a  certain 
sense,  fragile  property  sitting  on  the  ground  would  turn  him 
cold.  Ordinarily,  of  course,  the  navigable  channel  and  the  dock 
will  be  at  a  depth  which  will  allow  the  lock  to  be  used  for 
several  hours  both  before  and  after  the  tide  is  at  its  highest. 
When  a  port  is  situated  up  a  river  the  new  docks  for  the  always 
growing  ships  are  excavated  further  and  further  down  the  river 
— which,  however,  is  itself  always  being  dredged  deeper — in 
order  that  at  the  greater  depths  there  may  be  less  necessity  for 
waiting  for  the  tide :  and  the  fact  that  his  costly  vessel  has  been 
kept  waiting  for  a  few  hours  more  or  less  makes  the  modern 
owner  warm  with  indignation.  Now  here  it  may  be  remarked 
that,  whether  closed  docks,  tidal  docks  or  open  quays  are  con- 
cerned, it  is  all  one  so  far  as  regards  the  process  of  getting  to  them  : 
in  each  case  there  must  be  depth  in  the  navigable  channel  before 
the  ship  can  reach  them.  When  the  Port  of  London  controversy 
was  raging  there  was  much  abuse  of  what  was  described  as 
London's  antiquated  closed  dock  system.  With  open  quays,  as 
at  Antwerp  or  Hamburg,  it  was  pleaded,  ships  could  "  arrive  or 
leave  at  any  state  of  the  tide."  So  of  course  they  could  if  they 
drew  no  more  water  than  the  low-water  depth  of  the  navigable 
channel :  but  then  at  Antwerp  and  at  Hamburg  this  is  in  fact 
far  from  being  the  case.  Again,  these  open-quay  advocates 
would  have  trailed  the  ships  in  single  file  along  river  quays  from 
the  Albert  Dock  or  thereabouts,  towards  Gravesend,  ignoring 
the  great  rule  or  law  of  sound  port  economics  that  ship  and 
warehouse,  waggon-yard  and  railway  depot  should  all  be  brought 
as  close  as  possible  to  the  traders'  doors. 

Another  thing  they  ignored.  They  would  not,  they  objected, 
when  the  facts  were  pointed  out  to  them,  trail  the  ships  to 
Gravesend,  because  the  quays  could  be  provided  on  both  sides 
of  the  river :  but  here  again  they  went  wrong.  For  it  is  rather 
a  striking  fact  that  the  traders  of  a  port  will  by  no  means  assent 
to  any  port  scheme  which  will  place  a  river  between'them  and 
their  ships  and  cargoes.  These  have  got  to  be  on  the  trading 
side  of  the  river,  even  if  this  puts  the  docks  a  long  way  down. 


22  PORT   SYSTEMS 

And  so  we  see  at  London,  the  great  docks  (with  one  exception) 
all  on  the  north  or  trading  side  of  the  river,  the  Royal  Albert 
Dock  some  6  or  7  miles,  by  road,  from  London  Bridge.  But 
the  Port  Authority,  to  avoid  further  decentralisation,  are  not 
building  their  great  new  dock  still  further  down,  but  interposing 
it  between  the  river  and  the  Albert  Dock.  The  exception 
referred  to  is  that  of  the  Surrey  Commercial  System,  primarily, 
however,  a  timber  dock.  And  so,  again,  at  Antwerp,  the  city 
is  building,  simultaneously,  new  closed  docks  and  open  quays 
at  great  cost  of  site  acquirement  on  the  city  side  of  the  Scheldt, 
while  cows  graze  opposite,  across  the  river. 

Open  or  Tidal  Docks 

At  Glasgow,  Hamburg  and  Copenhagen  and  elsewhere,  the 
shipping  accommodation  is  in  tidal  docks.  The  docks  are  or 
can  be,  as  in  the  case  of  closed  docks,  excavated  "  in  the  dry  ", 
and  finally  a  lockless  entrance  is  given  to  the  navigable  channel. 
As  however,  the  bottom  of  the  docks  must  be  deep  enough  to 
keep  the  vessels  off  the  ground  at  low  water,  the  open  docks  have 
to  be  dug  to  an  adequate  depth.  Whether  closed  docks  or  open 
docks  are  in  question,  the  getting  rid  of  the  "spoil"  excavated 
is  a  serious  item  in  the  expense.  In  the  case  of  London's  new 
dock,  it  has  to  be  taken  well  out  to  sea  in  great  shutter-bottom 
barges  and  there  dropped.  An  economical  method  was  dis- 
covered in  the  case  of  one  of  London's  early  docks  ;  they  barged 
the  "  spoil "  on  the  tide  up-river  and  spread  it  over  the  flat  lands 
as  a  site  for  the  squares  and  terraces  of  future  Pimlico. 

The  mud-difficulty  is  always  more  or  less  present  with 
excavated  docks — seriously  more  when,  as  in  the  case  of  the 
Thames  or  Scheldt,  the  water  is  heavily  earth-charged.  The 
cost  of  dredging  the  London  docks  and  carrying  the  mud  to 
sea  is  an  important  item.  Tidal  docks,  excavated,  as  they  are, 
below  the  river  bottom,  must  needs  be  catch-pits.  On  the  other 
hand  they  escape  the  cost  of  "  pumping  up."  Every  time  a 
closed  dock's  gates  are  opened  below  high-water  level  there  is 
a  loss  of  (Vater,  and  this  loss  has  to  be  made  good  by  pumping 
in  from  the  river.  Where,  as  in  the  case,  for  example,  of 
Amsterdam,  the  surface  of  the  dock  is  below  high-water  mark 


LAND   PORTS   AND   WATER   PORTS  23 

outside,  then  the  opening  of  the  gates  lets  water  not  out  but  in, 
and  to  keep  the  dock  water  at  its  proper  level  "  pumping  down  " 
has  to  be  resorted  to. 

Open  Quays  or  Jetties 

Jetties  we  find  mostly  at  sheltered  ports  where  the  rise  of 
tide  is  inconsiderable.  Open  quays  may  also  be  at  such  ports, 
and  they  are  common  as  commercial  river  fronts  to  inland  cities. 
Antwerp  affords  a  notable  example.  The  river  bottom  along 
the  quay  front  has  of  course  to  be  dredged  out  so  as  to  provide 
floatage  for  the  ships  at  all  states  of  the  tide,  so  that  necessarily 
this  involves  a  quay  wall  of  great  height.  It  has  to  go  down 
deep  into  the  ground  on  account  of  under-scour,  and  must  be 
not  only  high  enough  to  guard  against  the  overflow  of  an 
abnormal  tide,  but  must  go  deep  enough,  over  and  above 
precautions  against  under-scour,  to  provide  floatage  at  a  tide 
abnormally  low.  Then,  since  at  low  tide  there  will  be  little 
water  to  countervail  the  lateral  thrust  of  the  earth,  with  the 
weight  of  rails  and  cranes  and  goods  upon  it,  the  wall  has  to  be 
of  corresponding  solidity.  And  the  work  cannot  be  done  "  in 
the  dry"  but  must  be  carried  out  by  divers  or  behind  caissons. 
This  makes  the  provision  of  open  quays  in  tidal  waters  an  ex- 
tremely costly  undertaking,  especially  when  deep-draught  vessels 
are  in  question.  The  expensive  work  of  lock  construction  and 
of  carrying  away  vast  quantities  of  "  spoil  "  is  of  course  avoided, 
but  this  is  a  saving  which  does  not  go  far  against  the  costliness 
of  the  system.  And  sometimes,  when  all  is  finished,  a  length 
of  frontage,  cranes  and  all,  may  slip  in  bodily,  and  the  work  may 
have  to  be  done  all  over  again — as  Antwerp  very  well  knows. 

Land  Ports  and  Water  Ports 

Perhaps  we  should  rather  say  Railway  Ports  and  Barge  Ports. 
Liverpool  is  purely  a  railway  port :  the  river  is  too  exposed  for 
the  use  of  barges.  At  Glasgow,  too,  barges  are  comparatively 
unknown.  Antwerp  and  Hamburg,  on  navigable  rivers  reaching 
far  into  the  interior,  are  essentially  mixed  ports.  The  huge 
barges,  some  of  them  carrying  as  much  as  two  or  three  thousand 


24  LAND    PORTS   AND   WATER    PORTS 

tons,  to  be  seen  at  these  ports,  are  a  revelation  of  the  possibilities 
of  inland  water  transport.  Mull,  the  centre  of  a  network  of 
water  systems,  is  largely  a  bar<;e  port,  the  barges  or  "  keels  " 
being  however  of  very  small  tonnage.  They  are  in  constant 
rivalry  witli  the  railways  for  the  traffic  of  the  Midlands. 

London  is  peculiarlj-  a  barge  port :  it  was  a  barge  port  from 
times  remote.  These  river  barges  or  lighters  are,  however,  almost 
entirely  for  local  traffic.  Most  of  them  are  perhaps  of  80  to 
1 50  tons,  too  big  for  canal  locks,  and  some  of  them  are  consider- 
ably larger.  The  canal  barge  or  "  monkey  boat "  ordinarily 
carries  some  25  tons  or  thereabouts.  In  the  port  of  London  there 
are  said  to  be  some  11,000  river  barges,  and  when  we  remember 
that  about  four-fifths  of  the  goods  which  are  put  on  board  or 
discharged  from  the  ships  in  dock  are  conveyed  to  or  from  them 
by  means  of  barges  we  can  understand  this  number.  For  some 
distance  below  London  Bridge,  and  for  some  distance  above 
it  on  the  south  side,  the  river  is  overlooked  by  wharves,  at  or  off 
some  of  which,  below  bridge,  small  steamers  lie  afloat  or  on  the 
ground  ;  at  others,  barges.  The  wharves  are  in  keen  competition 
with  the  docks  for  the  warehousing  and  "  management "  of  goods. 
London  is,  in  fact,  pre-eminently  a  city  of  wharves  or  riverside 
warehouses,  and  the  Thames  is  the  highway  for  their  barges. 
Barge  transport  is  the  essence  of  the  port,  the  docks  using 
barges  to  transfer  goods  from  dock  to  dock  and  the  railway 
companies,  with  their  waterside  depots,  similarly  relying  on 
barges.  When  the  railways  came,  the  land  near  the  trading 
portion  of  the  river  was  already  taken  up  by  valuable  premises, 
and  adequate  sidings  near  the  river  would  have  been  too  costly 
to  provide.  Moreover,  London  was  already  a  barge  port,  and 
the  railways  had  no  mind  to  compete  with  the  cheapness  of 
water  transport.  Persons  visiting  London's  trading  and  shipping 
centre,  after  seeing  the  miles  of  railway  sidings  necessary  at 
other  ports,  might  think,  as  many  have  thought  and  publicly 
declared,  that  London's  port  accommodation  is,  in  the  matter 
of  its  railways,  hopelessly  inadequate.  This,  however,  is  the 
answer:  London  is  a  barge  port.  Not  but  what  the  city  might 
be  better  off,  no  doubt,  for  improved  railway  facilities,  if  the  rail- 
ways could  afford  to  pay  the  price  for  them. 


BARGE  CANALS:  BRITISH  AND  CONTINENTAL     25 

Barge  Canals  :  British  and  Continental 

Before  the  railways  came,  canals  were  our  modern  and  up- 
to-date,  and  at  that  time  more  or  less  effective,  means  of  inland 
transport.  They  had  cost  much  to  make  and  their  maintenance 
was  no  doubt  considerable  :  so  that  they  were  probably  not 
particularly  cheap.  Then  came  the  railways,  tapping  their 
source  of  goods'  supply,  and  performing  in  a  few  hours  what  would 
have  taken  the  two-miles-an-hour  barges  days  or  weeks.  Some 
of  the  canals  the  railways  bought  up,  others  they  succeeded  in 
"  blanketing."  And  now,  e.xcept  for  some  northern  systems  and 
for  bulky  stuff  of  no  great  value,  barge  traffic  is  practically  dead. 
Not  long  ago  a  considerable  agitation  was  raised  upon  the 
subject,  and  a  Royal  Commission  was  appointed  to  report  on  it. 
How  far  the  agitation  was  disinterested  and  unprejudiced,  and 
how  far  it  may  have  been  aimed  at  a  reduction  of  railway  rates, 
cannot  be  said,  but  the  Royal  Commission  in  due  course  made 
its  report.  A  Royal  Commission  is  a  well-understood  political 
method  of  stopping  an  agitation  which  grows  inconveniently  in 
strength.  The  report  may  justify  the  agitation,  as  it  did  in  the 
case  of  the  Royal  Commission  on  Food  Supplies  (p.  216)  :  or  it 
may  not.  This  seems  immaterial,  for,  in  any  case,  by  the  time 
the  report  is  issued,  people  are  apt  to  have  forgotten  what  it  was 
all  about ;  and  whether  the  Commission  recommend  anything 
or  not,  the  report,  after  a  brief,  casual  discussion,  is  ordinarily 
pigeon-holed  and  lost  sight  of.  Which  is  not  far  from  what  has 
happened  to  the  canal  report:  and,  in  the  writer's  own  opinion, 
no  great  loss. 

As,  for  purposes  of  ocean  transport,  a  port  is  not  so  much 
a  terminus  as  a  stepping-stone  between  land  and  water  transport 
— the  beginning  or  end  of  an  ocean  ferry — clearly  the  efficiency 
of  the  land  transport  systems  is  one  of  the  first  importance  to  the 
traders.  And  if,  as  is  certainly  the  case,  inland  water  transport 
is  highly  beneficial  to  German  and  other  Continental  industries 
and  communities,  why,  it  is  often  asked,  do  we  in  England  now 
neglect  the  corresponding  canal  facilities  made  available  to  us  at 
great  outlay  in  the  past .''  The  reasons  are  numerous  and,  as  it 
seems,  sufficient. 


26  BARGE    CANALS: 

Vhst  of  all,  we  arc  a  narrow  country  with  the  sea  on  every 
side.  Our  manufacturing  centres  can  get  their  raw  materials 
from,  and  send  their  output  to,  an  alternative  of  ports,  on  either 
coast,  in  a  few  hours  by  rail.  And  nowadays  in  commerce, 
expedition  rules  the  day,  and  time  is  money.  Compare 
Germany  :  look  at  the  map.  A  huge  land-locked  country  with 
far-reaching  hinterlands,  with  only  one  coast-line,  which,  for  many 
of  the  industrial  cities,  is  a  great  way  off.  All  the  more  reason, 
it  may  be  said,  for  their  using  the  railway  truck  and  not  the 
slow-going,  even  if  tug-drawn,  barge.  Certainly,  all  the  more 
reason  ;  but  then  Germany's  railway  system,  in  point  of  mileage 
and  extent,  is  not  to  be  compared  with  ours.  Her  railways 
could  not  do  the  work. 

Then  there  is  another  geographical  reason  :  Germany  has 
got  what  we  have  not  got,  far-reaching  navigable  rivers — navi- 
gable, that  is  to  say,  to  huge  barges  such  as  in  our  country  are 
undreamed  of.  And  size,  in  the  matter  of  water  transport, 
means  cheapness.  And  the  German  canals  exist  essentially 
because  of  the  rivers,  which  are  mainly,  if  not  entirely,  free  of 
tolls.  The  canals  are  largely  connecting  links  between  great 
water-systems.  How  can  we  hope  to  do,  without  the  rivers, 
what  for  German  canals  is  rendered  possible  by  the  rivers  ?  But, 
after  all,  have  we  not,  in  effect,  already  got  the  canals  ?  So  far 
as  they  consist  in  an  alternative  to  railway  transport,  certainly 
we  have.  We  are  like  the  proverbial  Australian  cherry,  which 
has  its  stone  outside.  Our  canals  are  outside,  round  the  coast, 
with  our  great  and  fast  steam  barges,  the  coastal  steamers, 
picking  up  cargo  here,  dropping  it  there,  at  every  coastal  town, 
pressing  on  the  railways  everywhere.  With  Coastwise  Traffic 
we  have  yet  to  deal. 

Again,  a  reason  none  the  less  effective  because  it  is  practical 
rather  than  geographical,  Germany's  great  industrial  awakening 
took  the  means  of  transport  as  it  found  them.  A  man  having  a 
factory  to  build,  built  it  on  a  river  or  canal,  long  known  as  an 
excellent  means  of  transport.  The  man  at  the  other  end,  who 
had  to  receive  and  forward  the  output  of  such  factories,  naturally 
built  his  premises  on  the  water,  too.  We,  with  our  many 
scores  of  competing  railways,  and  without  the  rivers,  went  the 


BRITISH    AND   CONTINENTAL  27 

other  way  to  work.  We  built  our  factories  and  our  receiving 
stores  where  their  overhead  cranes  could  drop  into  railway  trucks 
beneath  ;  or  on  a  private  siding  connected  with  the  railway 
system.  Even  if  expedition  did  not  now  count,  and  time  were 
not  money,  would  our  manufacturers  and  warehousemen  to-day 
be  willing  to  incur  the  cost  and  risks  of  double  handling  to  get 
their  goods  on  board  or  from  a  barge  100  yards  or  five  miles  from 
their  premises?  It  stands  to  reason  that  they  would  not.  In 
the  days  before  the  railways  our  canals  and  locks  were  not  always 
of  the  same  gauge,  involving  at  certain  points  transhipment, 
double  handling  ;  an  abomination  to  the  merchants.  With  things 
cut  as  fine  as  they  are  to-day,  double  handling  might  easily  be 
fatal  to  a  trade  competing  with  a  rivalry  under  no  such  dis- 
advantage. And  in  winter-time  the  canals  might  be  closed  or 
impeded  by  ice,  and  in  summer  possibly  by  want  of  water.  That 
this  is  not  a  purely  imaginary  danger  may  be  gathered  from  a 
statement  in  the  shipping  Press  during  a  very  hot  summer  in 
recent  times.  "  The  drought  in  Germany,"  it  was  observed,  "  has 
practically  closed  the  canals  and  water-ways.  Shipments  to  that 
country  have  either  been  sent  round  by  Stettin,  or  have  been 
suspended  altogether."  And  ice  obstruction  must  needs  be  an 
annual  possibility.  And  although  it  is  true  that  we  have  got  the 
canals,  ours,  compared  with  those  in  Germany,  are  under  serious 
disadvantage,  England  is  a  land  of  many  levels,  while  in 
Germany  there  is  plenty  of  flat  land  for  canals.  It  was  stated 
the  other  day  that  between  Hamburg  and  Berlin,  285  miles,  only 
three  locks  exist.  On  the  canal  systems  between  London  and 
Liverpool,  the  locks  are  said  to  range  from  190  in  number  to 
between  200  and  300,  all  adding  to  delay  and  cost  of  working. 
Germany  is  well  supplied  with  rivers  and  not  well  supplied  with 
rails.  We  are  well  supplied  with  railways  and  are  practically 
riverless.  And  in  Germany  it  is  largely  the  rivers  which  need 
the  canals  as  connecting  links. 

How  then,  it  may  be  asked,  about  Holland  ?  But  the  position 
of  Holland  is  unique.  An  ancient  writer  gave  it  as  his  view  that 
the  Netherlands  were  the  joint  product  of  the  Rhine,  which  brought 
down  mud,  and  the  N.W.  wind,  which  raised  up  great  sand  dunes 
as  sea  walls  and  carried  their  surface  continually  inland.     The 


28     HARGK  CANALS:  BRITISH  AND  CONTINENTAL 

Dutclnnan's  version  is  that  God  made  the  sea  and  man  made  the 
land  ;  and  in  his  case  there  is  a  good  deal  to  be  said  for  the  view. 
The  country  has  now  before  it  a  colossal  scheme  of  reclamation 
of  the  Zuyder  Zee.  The  Rhine  carries  down  soil  from  Switzerland 
and  the  Dutchman  plants  his  tulips  in  it.  It  is  good  for  tulips,  but 
not  for  making  roads.  It  never  lent  itself  to  road-making  any 
more  than  it  supplied  the  needful  "metal."  The  ingenious 
Hollander  therefore  made  his  roads  of  water  and  his  farm-carts 
boats.  And  as  his  reclaimed  lands  were  ever  in  need  of  draining, 
he  made  his  roads  his  drains.  Those  who  advocate  increased  use 
of  canals  in  England  must  therefore,  it  would  seem,  leave  Holland 
out  of  the  argument. 

Navigable  Channels  and  the  Tides 

The  navigable  channels  to  river  ports,  however  ancient  the 
port,  are,  in  effect,  of  more  or  less  modern  creation.  When  in  old 
times  banks  and  shallows  formed  themselves,  as  form  they  will 
in  every  river,  primitive  methods  of  dredging  were  adopted  for 
their  lessening  or  removal  ;  but  probably  the  early  dredging  of 
the  Thames  near  London  owed  most  to  the  fleets  of  Newcastle 
colliers,  which  had  to  get  ballast  for  their  return  voyage  somehow, 
and  scooped  up  gravel  from  the  river's  bed  as  the  easiest  and 
cheapest  means  of  doing  so.  A  certain  amount  of  dredging, 
too,  was  carried  on  for  sale  of  the  gravel.  But  of  all  the  methods 
of  river  deepening  perhaps  the  most  wholesale  and  effective  is 
the  erection  of  training  w^alls  along  the  banks.  This  was  done, 
as  we  know,  in  early  daj's  with  Father  Thames  in  order  to  steal 
from  him  his  saltings  and  tidal  marshes  and  turn  them  into 
grazing  land.  The  force  of  the  tide  or  current,  instead  of  being 
dissipated  by  the  flooding  of  the  land,  is  emplo\-ed,  by  means  of 
controlling  earth  walls,  in  cutting  the  river  deeper ;  and  very 
efiectually  it  does  its  work.  The  forces  of  nature  are,  in  fact, 
used  to  overcome  nature's  obstruction.  When  in  the  'sixties  the 
Thames  Embankment  was  created,  the  sloping  banks  which  the 
river  covered  when  his  tide  was  up  were  taken  from  him.  He 
had  to  put  his  overplus  somewhere,  so  when  the  tide  was  abnor- 
mally high  he  poured  it  through  the   stone  balusters  of  the 


NAVIGABLE   CHANNELS   AND   THE   TIDES     29 

Embankment  and  over  the  roadway.     The  consequence  was  that 
all  the  balusters  had  to  be  removed  and  the  wall  made  solid. 

But  in  these  days  of  great  "  long-legged  "  ships  continually 
growing  bigger,  the  tide  cannot  be  left  to  do  its  own  work,  and 
dredgers  of  immense  power  have  to  be  put  upon  the  job — bucket 
dredgers  which  scoop  out  about  a  cartload  at  each  successive 
bite — sand-suckers  which  draw  the  bottom  through  their  mighty 
gullets  and  deposit  it  on  board  or  in  a  hopper  alongside.  The 
bucket  dredgers  nowadays  have  their  chain  or  ladder  of  buckets 
adjustable,  so  that  it  can  be  equally  directed  either  vertically  to 
a  great  depth  beneath  the  vessel,  or  forward  almost  level  with 
her  bottom,  in  which  position  the  vessel  can  eat  her  own  way 
into  the  land,  making  her  own  floatage  as  she  goes.  Modern 
engineering  and  shipbuilding  science  have  done  wonders  for  port 
development. 

But  no  sooner  has  an  extra  half-foot  of  depth  been  given,  at 
great  outlay,  to  a  navigable  channel  than  a  ship  bigger  than  the 
last  comes  up  with  a  heavy  cargo,  and  her  successful  example 
soon  finds  imitators.  Then,  once  more,  complaints  begin  that 
the  river  is  not  deep  enough,  and  traders  who  have  learnt  that 
deep  ships  mean  cheap  ships  clamour  at  the  supineness  of  the 
port  authorities ;  and  further  deepening  has  reluctantly  to  be 
decided  on.  And  to  dredge  away  a  shallow  patch  in  one  place 
is  not  seldom  to  create  another  somewhere  else.  The  ways  of 
a  river  are  mysterious  and  past  finding  out.  Thus  in  the  Scheldt 
not  long  ago  a  powerful  dredger — or  was  it  two  dredgers  ? — after 
working  for  some  time  at  a  bank  with  no  result  was  taken  off  in 
despair :  and  forthwith  the  river  swept  the  bank  away  propria 
motii.  Every  brooklet,  stream  and  river  is  more  or  less  charged 
with  rain-washed  soil,  all  to  find  its  way  to  the  river's  mouth, 
and  any  alteration  or  obstruction  which  sets  up  a  swirl  piles  up 
foot  upon  foot  of  sand  or  mud.  And  if  one  of  these  banks 
escapes  notice  until  some  deep  ship  touches  on  it,  great  will  be 
the  outcry.  But  dredging  in  a  narrow  river  with  premises  on  the 
banks  has  to  be  cautiously  undertaken,  or  the  consequences  to 
the  premises  may  be  grave. 

The  great  value  of  their  capital  at  stake  and  the  heavy 
working  costs  make  shipowners  impatient  of  delay  ;  and  if  their 


30     NAVIGABLE    CHANNELS    AND   THE   TIDES 

vessel  arrives  at  the  river's  mouth  at  low  water  and  has  to  wait 
not  merely  for  half-tide  hut  for  full  tide,  or  close  upon  it,  before 
proceeding  to  the  docks,  it  is  bad  for  the  reputation  of  the  port. 
How  man)'  feet  of  difference  there  ma)-  be  between  high  and 
low  tide  will  of  course  depend  on  the  locality,  as  well  as,  of 
course,  upon  whether  the  tide  is  spring  or  neap.  It  is  a  spring 
tide  when  it  rises  or  "  springs  "  highest  and  sinks  lowest :  a  neap 
or  "  nip  "  tide  when  its  rise  and  fall  is  least.  We  speak  of  a  "  nip  " 
as  distinguished  from  a  full  draught ;  or  a  '*  nip  "  as  distinguished 
from  a  grasp  ;  and  so  of  a  neap  or  nip  tide  as  distinguished  from 
a  spring  or  full  tide. 

The  tides  are  due  to  the  conjoint  influence  of  the  moon  and 
sun,  the  vaster  bulk  of  the  sun,  as  an  attracting  force,  being, 
however,  much  less  in  its  effect  than  that  of  the  moon,  which  is 
comparatively  close  to  us.  The  solid  earth  is  but  little  if  at  all 
affected  by  this  attraction,  but  the  more  mobile  waters  strongly 
show  the  influence.  Not  those,  however,  of  more  or  less  land- 
locked seas  of  small  area  such  as  the  Baltic  and  the  Mediterranean  ; 
and  in  such  seas  there  is,  in  fact,  but  little  tide,  though  doubtless 
at  the  end  of  long  bays  it  will  be  evident.  A  wide  and  deep 
ocean  is  needed  to  show  the  full  effect. 

As  the  earth  travels  through  space  and  revolves  upon  its 
axis  it  is  continually  presenting  a  fresh  surface  to  the  influence 
of  the  moon.  This  attraction  is  greatest  at  new  moon  and  at  full 
moon,  when  the  sun  and  the  moon  are  aligned,  and  it  is  their 
joint  operation  which  draws  the  water  highest.  We  then  get 
the  "spring"  tides,  when  the  water  "springs  "  or  leaps  the  highest, 
and,  conversely,  when  it  falls  the  lowest.  When  these  two  great 
bodies  are,  so  to  say,  more  or  less  at  right  angles  to  one  another 
— when  the  moon  is  in  the  quarters — the  water  does  not  respond 
so  freely.  The  tides  neither  rise  so  high  nor  fall  so  low :  they 
are  scanty  or  "  neap."  Each  fortnight  we  get  a  spring  and  each 
fortnight  a  neap  tide. 

The  difference  of  range  between  springs  and  neaps  varies 
according  to  the  locality.  At  one  place  the  spring  tides  may 
rise  a  couple  of  feet  higher  and  fall  a  couple  of  feet  lower  than 
neaps,  at  another  the  difference  may  be  four  or  five  times  as 
much.     For  example : 


NAVIGABLE    CHANNELS    AND   THE   TIDES     31 


ft. 

ft. 

ft. 

Gravesend 

l8|   H.  W.  S. 

15    H.W.N, 

Difference 

3^ 

Liverpool 

27i       .. 

20i        „ 

>> 

7\ 

Glasgow 

Hi       „ 

9i        . 

„ 

2 

At  the  Equinoxes,  about  the  end  of  March  and  September, 
the  tidal  range  is  at  its  greatest ;  but  we  sometimes  also 
get  abnormal  tides.  Barometrical  pressure  comes  into  it,  and 
especially  the  winds.  And  when  a  river  is  in  question,  flood 
water  coming  down  heavily  and  a  strong  wind  piling  up  the 
incoming  tide  against  it,  then  we  get  the  towpath  under  water. 
But  the  depths  shown  on  the  Admiralty  tables  are  the  mean  or 
ordinary  low  water  depths,  so  that  at  a  particular  place  a  tide 
may  on  occasion  differ  perhaps  a  couple  of  feet  from  the  almanac 
depth.  A  strong  wind  has  been  known  to  make  at  London 
Bridge  a  difference  of  5  ft.  A  vessel,  therefore,  of  which  the 
draught  does  not  leave  much  water  under  her  keel  at  the  almanac 
depth  of  a  channel  has  to  be  on  guard  against  an  abnormally- 
low  tide.  It  is  a  remarkable  circumstance  that  at  Southampton 
and  at  Havre  there  is  what  is  known  as  a  double  high  tide,  greatly 
to  the  advantage  of  the  big  ships,  and  at  Portland  a  double  low 
tide.  This  is  or  has  been  supposed  to  be  attributable  to  the  set 
of  the  waters  round  the  Isle  of  Wight.  It  is,  however,  a  difficult 
problem. 

Viewing  the  subject  of  the  tides  generally,  it  may  be  observed 
that  the  range  of  the  tide  is  especially  great  in  narrow  seas  where 
the  drawing  together  of  the  shores  contracts  the  tidal  energy  into 
a  restricted  space.  As  the  tide  comes  in,  and  the  tide-way 
narrows,  the  water  is,  so  to  say,  piled  up  on  itself  To-day  the  tide 
at  London  Bridge  rises  about  20  ft.  In  the  remote  days,  before 
the  construction  of  the  great  training  walls,  it  spread  itself  out 
over  the  Kent  and  Essex  flats,  where  there  was  plenty  of  room 
for  it  without  crowding.  But  now,  pouring  in  through  the  wide 
estuary  of  the  Thames,  irresistibly  impelled  onwards  by  the 
mighty  force  behind  it,  and  contained  by  the  great  earth 
parapets,  it  is  piled  up  and  up,  with  the  result  that,  in  places, 
the  grazing  land  behind  the  walls  is  said  to  be  10  ft.  below  the 
river  surface.      And  the  great  ships,  coming  up  or  down  on  the 


32     NAVIGABLE   CHANNELS   AND   THE   TIDES 

raised  surface  of  the  river,  seem  from  the  railway  to  be  standing 
high  above  the  land. 

And  if  we  can  imagine  the  ancient  earth-works  pushed 
further  forward,  we  should  get,  presumably,  a  tide  still  higher. 
At  the  head  of  the  Bristol  Channel,  which  opens  wide  from  the 
.sea  and  is  contracted  rapidly,  there  is,  with  an  excessive  spring 
tide,  according  to  Lloyd's  Calendar,  a  range  of  approximately 
60  ft.  In  the  Thames  the  effect  of  the  contraction  is  easily 
remarked.  Thus,  in  round  figures,  a  14^  ft.  rise  at  Southend, 
nearly  on  the  sea,  becomes  i8i  ft.  at  Gravesend,  and  20  ft.  at 
London  Bridge.  Then  it  begins  to  tail  off  till  checked  by  the 
half-tide  dam  at  Richmond.  Anciently  it  rose  to  Teddington — 
said  to  have  been  "Tide-ington  " — though  some  think  that  the 
tide  reached  higher. 

Sometimes,  by  reason  of  excessive  draught,  a  vessel  can  get 
up  to  a  dock  only  on  high-water  springs  ;  or  she  may  get  aground 
at  high-water  springs.  Consequently  there  in  the  dock,  or  unless 
lightened  of  her  cargo,  on  the  ground,  she  must  remain,  past  the 
high-water  neaps,  until  high-water  springs  come  round  again.  In 
such  a  condition  she  is  said  to  be  "  neaped." 

The  subject  of  the  tides  and  lunar  attraction  is,  of  course, 
highly  technical  and  scientific,  and  the  foregoing  summary  is 
offered  with  diffidence. 


CHAPTER    II 

Ships  :  Ownership  and  Registration 

Every  British  vessel  of  a  "  burden  "  not  exceeding  a  small 
tonnage  ( 1 5  or  30  tons,  according  to  trade)  has  to  be  registered, 
that  is,  she  has  to  be  entered  in  the  official  Board  of  Trade 
register  as  a  British  vessel.  This  register  has,  of  course,  nothing 
whatever  to  do  with  Lloyd's  Register,  which  is  a  different  thing 
altogether.  Lloyd's  Register  will  be  explained  later.  The 
Board  of  Trade  register  contains  elaborate  particulars  of  each 
vessel  entered  in  it  :  name  and  port  of  registry  ;  place  and  date 
of  build  ;  name  and  address  of  builders.  Her  internal  construc- 
tion is  minutely  tabulated,  and  all  her  various  measurements, 
her  engines  and  their  builders,  and  the  vessel's  speed ;  her 
various  tonnage  measurements  ;  and  finally  the  shares  of  every 
owner,  with  their  names  and  addresses.  A  parchment  "  Certifi- 
cate of  Registry  ",  embodying  such  particulars  as  are  necessary,  is 
then  supplied  to  the  owner,  or  managing  owner,  signed  by  the 
Registrar  of  Shipping,  and  this  certificate  is  carried  on  board  the 
ship  as  evidence  of  her  identity. 

Every  registered  vessel  has  her  official  number.  It  thenceforth 
belongs  to  her  only,  and  may  never  again  be  used  for  any  other 
vessel.  It  has  to  be  cut  in  on  her  main  beam.  Her  name  and 
port  of  registration  must  be  painted  on  her  stern,  and  her  draught 
must  be  painted  on  her  bow  and  stern.  A  vessel's  registered 
port  need  not,  however,  be  her  home  port,  and  we  not 
infrequently  see,  in  fact,  a  port  of  registration  other  than,  for 
example,  London,  painted  on  a  vessel's  stern,  when  we  should 
certainly  have  said  that  she  was  London  owned.  1  he  explana- 
tion is  generally  understood  to  lie  in  the  provisions  of  the 
Compulsory  Pilotage  law.     Under  this  law,  a  ship  properly  and 

o.  3 


34     SHIPS:   OWNERSHIP    AND    REGISTRATION 

necessarily  carrying  a  compulsory  pilot  is  not  at  present  re- 
sponsible if  the  pilot  runs  the  vessel  into  and  sinks,  or  damages, 
another  vessel.  But  there  is  an  important  exception  to  this.  As 
a  ship  is  presumably  well  acquainted  with  her  own  home  port, 
the  law  does  not  apply  to  a  vessel — not  then  carrying  passengers 
— which  is  navigating  within  the  pilotage  limits  of  her  port  of 
registration  if  this  port  be — for  other  vessels — one  of  compulsory 
pilotage.  It  is,  of  course,  free  to  her  to  engage  a  pilot,  but  this 
does  not  make  him  a  compulsory  pilot.  Consequently,  though 
in  such  a  case  the  pilot  may  cause  damage  to  another  vessel,  the 
owners  and  not  the  pilot  will  be  liable.  To  avoid  this  liability,  as 
it  is  believed,  ships  are  sometimes  registered  as  of  another  port 
than  that  which  is  really  their  home  port.  A  ship  is,  under  the 
law,  deemed  to  belong  to  the  port  at  which  she  is  registered. 
Then  at  her  home  port  (as  distinguished  from  her  registered  port) 
her  pilot  becomes  compulsory,  and  he  and  not  the  owners  will 
be  responsible,  but  only  up  to  his  ;^ioo  bond  and  the  fee  he  is 
earning.  The  Pilotage  Act,  191 3,  however,  provides  in  section 
15  that  on  and  after  i  January  191 8,  or  earlier  date  if  so 
determined,  the  owner  or  master  of  a  vessel  navigating  under 
compulsory  pilotage  shall  be  answerable  for  any  loss  or  damage 
caused  by  the  vessel  or  by  her  faulty  navigation  in  the  same 
manner  as  if  the  pilotage  were  not  compulsory.  With  the 
subject  of  collision  liabilities  generally  we  deal  later. 

Tonnage  Measurement 

This  is  a  subject  which  gives  rise  to  no  little  confusion  and 
misunderstanding.  Even  in  mercantile  circles  it  is  b)-  no  means 
always  correctly  apprehended.  To  begin  with,  there  may  be 
said  to  be  three  separate  and  distinct  ways  of  assessing  the  "size" 
of  a  ship. 

First  comes  displacement,  which  is  essentially  the  naval 
standard.  If  a  body  be  set  afloat  in  a  vessel  absolutely  full  to 
the  brim,  the  water  which  it  will  displace  and  cause  to  overflow 
will  or  should  weigh  exactly  the  same  as  the  floating  object 
which  displaces  it.  Therefore,  by  inversion  of  ideas,  the  avoir- 
dupois or  scale  weight  of  a  ship  is  known  as  her  displacement. 


OFFICIAL   TON   AND    CONVENTIONAL   TON     35 

Displacement,  then,  is  the  weight  of  a  ship  if  one  can  imagine  her 
to  be  broken  into  pieces  and  the  pieces  put  into  the  scale.  The 
term  is  rarely  used  in  mercantile  circles.  In  the  case  of  a  ship 
of  war,  once  launched  and  with  her  guns  on  board,  her  weight  or 
displacement  will  remain  constant.  At  any  rate  it  will  be  varied 
only  by  her  coals  and  by  any  change  of  armament,  and  the 
alteration  so  introduced  will  of  course  be  readily  ascertainable. 

The  weight  of  a  merchant  vessel,  on  the  other  hand,  may  be 
looked  at  from  different  points  of  view.  When  she  is  first 
launched  she  has  on  board  neither  cargo  nor  ballast.  Her  ballast 
weight  will  differ  from  her  launching  weight.  Her  loaded  weight 
will  differ  from  her  ballast  weight.  Then,  again,  she  may  be 
loaded  down  to  her  "  mark  "  with  a  heavy  cargo  of  ore  or  rails, 
which  does  not  nearly  exhaust  her  internal  capacity,  or,  on  the 
other  hand,  her  internal  capacity  may  be  fully  exhausted  by  a 
cargo  so  light  that  it  leaves  her  loadline  well  above  the  water. 
But  as  a  ship  has  to  carry  her  own  weight  as  well  as  that  of  her 
cargo,  the  heavier  she  is  herself  the  less  cargo  can  she  carry. 
Consequently,  in  ordering  a  ship  of  the  builders,  the  prospective 
owners  may  well  stipulate  as  to  her  maximum  displacement. 

In  the  case  of  the  next  standard,  that  of  deadweight  capacity 
or  "  lift  ",  we  are  still  dealing  with  weight.  A  vessel's  deadweight 
capacity  will  depend — apart,  of  course,  from  her  size — on  her 
design  and  her  internal  space.  The  squarer  her  cross  section 
the  more  will  she  be  likely  to  carry. 

Official  Ton  and  Conventional  Ton 

With  the  third  standard,  from  a  mercantile  point  of  view  the 
most  important  of  all,  we  get  altogether  away  from  weight  and 
"  lift "  and  come  to  measurement.  This  is  the  Board  of  Trade 
standard,  and  it  governs  all  trading  vessels.  The  Board  does  not 
concern  itself  at  all  with  displacement  or  lift,  at  any  rate  in  this 
connexion,  and  deals  solely  with  internal  measurement  space, 
internal  measurement  in  cubic  feet.  And  for  this  purpose  there 
has  been  adopted  a  purely  arbitrary  so-called  "ton"  which  consists 
of  100  cubic  feet.  In  days  remote,  the  standard  of  a  vessel's  size 
was  her  capacity  to  stow  casks  or  conventional  "  tuns  "  of  wine. 

3—2 


36     OFFICIAL   TON    AND   CONVENTIONAL   TON 

The  terms  tun  (capacity)  and  ton  (avoirdupois)  thus  became  con- 
vertible. And  similarly  freight  was  charged  on  the  tun  or  ton, 
cither  cubic  measurement,  if  the  goods  could  be  readily  measured, 
or  ton  weight  if,  being  in  bags  or  bulk,  measurement  was  difficult. 
But  the  weight  or  specific  gravity  of  goods  will  of  course  govern 
the  space  which  they  will  occupy.  Wine  will  cube  into  35  feet ; 
coals,  say,  into  40  feet  to  45  feet,  according  to  the  colliery 
(cf.  clau.se  16  in  charterparty,  p.  78).  At  any  rate,  40  cubic  feet 
came  to  be  adopted  as  the  equivalent  of  a  ton  avoirdupois.  A 
cubical  case  measuring  about  3  ft.  6  in.  each  way  represents 
a  mercantile  or  freight  ton  of  40  cubic  feet,  and  such  a  package 
is  conventionally  supposed  to  contain  a  ton  weight  avoirdupois. 
But  if,  for  example,  the  contents  should  be,  say,  ostrich  feathers, 
or  an  electrolier  packed  in  shavings,  the  contents  would  weigh 
very  much  less  ;  but  still  the  case  would  represent  a  freight  ton. 
The  conventional  freight  ton,  then,  being  40  cubic  feet,  how 
came  the  Board  of  Trade  to  adopt  an  arbitrary  ton  of  100  cubic 
feet  ?  For  one  thing,  the  figure  approximates  to  that  of  the  94  ft. 
which  had  long  previously  been  in  force ;  it  has  statistical 
advantages  of  its  own  and  it  differs  so  widely  from  the  con- 
ventional ton  that  it  may  well  have  been  thought  that  it  would 
prevent  confusion — which,  however,  it  certainly  has  not  done. 
But  if  the  Board  had  adopted  40  cubic  feet  as  its  standard,  still 
greater  confusion  would  have  been  created,  owing  to  the  wide 
difference  in  the  space  required  for,  say,  a  ton  of  lead  and  a 
ton  of  ostrich  feathers.  At  all  events,  the  Board  adopted  100 
cubic  feet  as  the  official  standard  of  ship  measurement.  Conse- 
quently the  official  ton  represents,  or  is  equivalent  to,  2^ 
conventional  freight  tons.  And  whereas  the  freight  ton  may 
equally  imply  either  deadweight  or  cubic  measurement,  the 
official  ton  is  a  measure  of  cubical  capacity  alone. 

The  Official  Board  of  Trade  Measurement 

The  official  ton,  then,  consisting  of  100  cubic  feet,  on  what 
basis,  in  the  case  of  ship-capacity,  is  this  measurement  arrived 
at?  Being  purely  a  measure  of  internal  capacity,  it  entirely 
disregards  the  j^otential   "  lift "   of  the  ship  and  her  ability  to 


NET   REGISTER   TONNAGE  37 

carry  cargo  on  deck,  and  applies  solely  to  the  permanently 
covered-in  space.  It  is  not  necessary  for  us  to  go  into  the 
highly  technical  and  minute  rules  for  measurement  laid  down 
in  the  Merchant  Shipping  Act  ;  we  can  content  ourselves  with 
the  fact  that  the  internal  space  has  to  be  accurately  ascertained 
in  cubic  feet  and  that  the  total  number  of  feet  is  then  divided 
by  100  to  get  the  tons. 

The  first  step  in  the  process  is  to  ascertain  the  total  number 
of  cubic  feet  under  deck,  the  capacity,  so  to  say,  of  the  empty 
shell  of  the  ship.  This  is  known  as  the  Under-Deck  Tonnage. 
It  will  be  seen  printed,  by  the  way,  against  each  ship  in  Lloyd's 
Register,  together  with  the  two  following  measurements. 

Gross  Register  Tonnage 

The  under-deck  measurement  having  been  ascertained,  the 
cubic  contents  of  the  deck  structures  are  measured,  and  these 
contents  are  added  to  the  under-deck  total.  The  cubic  contents 
of  the  deck  houses  will  of  course  vary  according  to  circumstances, 
but  for  the  sake  of  a  figure  we  may  put  it,  in  the  case  of  ordinary 
cargo  steamers,  at  somewhere  about  5  per  cent,  addition.  The 
under-deck  measurement  plus  that  of  the  deck  houses  gives 
the  vessel's  Gross  Tonnage.  So  that  if,  for  example,  the  gross 
measurement  should  be  3000  tons  (each  of  100  cubic  feet),  then 
prima  facie  the  vessel  should  be  able  to  contain  7500  freight  tons 
(measurement)  each  of  40  cubic  feet.  But  this,  of  course,  is 
impossible,  because  a  considerable  portion  of  her  capacity  has 
to  be  taken  up  by  engine-room  and  crew  and  navigation  space. 
Therefore  yet  a  third  measurement  is  made. 

Net  Register  Tonnage 

Officially,  a  vessel's  "  registered  tonnage "  means  her  Net 
Register  Tonnage.  In  mercantile  circles  "tonnage"  may  mean 
either  gross  or  net  according  to  the  expressed  or  implied  context, 
but  probably  it  will  mean  the  gross.  Here,  obviously,  is  room 
for  great  confusion,  and  a  column  of  figures  headed  simply 
"  Tonnage  "  may  mean  either  gross  or  net,  a  fact  to  be  carefully 
borne  in  mind.     Possibly  the  somewhat  vague  term  "  burthen  " 


f*;».*J*L>l/«-lrX 


38  NET    REGISTER   TONNAGE 

or  "  burden  "  may  be  a  further  cause  of  confusion.  Curiously 
enough,  it  is  mentioned  in  the  Act  without  any  definition  of 
its  meaning — certain  ships  not  exceeding  30  tons'  "  burden  " 
need  not  be  registered.  In  practice,  the  term  is  ordinarily  taken 
to  mean  net  register. 

The  Gross  Tonnage,  then,  having  been  determined  as  above, 
it  remains  to  ascertain  the  Net.  This  is  done  by  measuring 
the  cubic  contents  of  the  crew-and-navigation  space  and,  more 
important,  of  the  engine-space,  and  deducting  their  joint 
aggregate  from  the  Gross.  As  a  rough  rule — there  can  obviously 
be  no  fixed  rule — the  deduction  will  be  about  one-third  of  the 
Gross.  So  that  in  the  case  supposed  above,  the  Net  Tonnage 
measurement  of  the  3000  ton  vessel,  gross  measurement,  would 
be  2000  tons  of  100  cubic  feet.  And  if,  as  before,  we  multiply 
this  by  2|  to  get  the  freight  tons  (40  x  2^  =  100),  then  what  we 
may  term  the  cargo  or  freight  capacity  of  the  ship  will  be 
5000  tons  ;  and  this  will  probably  be  the  case,  or  not  very  far 
out.  So  that,  roughly,  to  get  at  the  probable  cargo  capacity 
of  a  freight  ship  we  either  add  two-thirds  to  the  Gross  Register 
(3000  -1-  2000  =  5000)  or  multiply  the  Net  by  2|  (2000  x  2^  =  5000). 
Some  ships  will,  however,  carry  double  their  Gross  Register, 
some  perhaps  not  50  per  cent,  above  their  Gross  ;  and  there 
is  also  no  fixed  rule  as  to  carriage  potentiality  of  the  Net. 

Shelter  Decks 

If  a  ship  is  carrying  a  heavy  cargo  she  may  be  down  to  her 
mark  without  being  full.  Conversely  a  light  cargo  may  fill  her 
chock-full  without  nearly  exhausting  her  deadweight  capacity. 
To  provide  for  such  a  contingency  ships  are  often  built  with  some 
form  or  another  of  "shelter  deck."  This  is  a  sort  of  super- 
imposed hold  which  has  one  or  more  tonnage  openings  in  the 
deck:  a  super-deck  structure.  Not  being  "permanently  closed  in" 
it  is  outside  the  ship's  register  altogether,  and  is  not  included 
in  the  official  measurement.  If  the  ship  has  a  heavy  cargo, 
bringing  her  down  to  her  mark,  the  shelter  deck  is  left  un- 
occupied. If,  however,  by  reason  of  the  lightness  of  her  cargo 
she  can  carry  more,  perhaps  a  great  deal  more,  then,  if  the  cargo 


SPECIAL   DESIGNS   OF   CONSTRUCTION         39 

be  available,  the  shelter  deck  will  be  used.  Consequently  the 
possession  of  a  form  of  shelter  deck  may  materially  affect  the 
rough  rules  of  calculation  which  have  just  been  suggested. 
Under  the  head  of  Charters  it  was  the  other  day  remarked  in 
the  Press  that  a  vessel  which  had  secured  a  certain  cotton  charter 
had  160  ft.  capacity  to  the  net  register  ton — i.e.  of  100  ft., — which 
is  certainly  surprising. 

The  main  object  of  the  above  ingenious  device  is  this  :  ships 
engaged  in  the  oversea  trade  pay  tonnage  or  port  dues  on  their 
Board  of  Trade  net  tonnage,  and  on  any  additional  space 
actually  occupied  at  the  time  with  cargo.  By  means  of  the  not- 
measured-in  shelter  deck  a  vessel  is  provided  with  additional  or 
emergency  space  for  light  cargo,  but  as  this  space  is  not  included 
in  the  registered  tonnage  it  pays  no  dues  when  it  is  not  occupied. 
The  Suez  Canal  authorities,  however,  who  have  their  own  rules 
as  regards  measurement,  decline  to  fall  in  with  this.  If,  say  they, 
the  extra  space  has  ever  at  any  time  been  used  to  carry  cargo  in, 
then  it  must  be  assessed  for  Canal  dues,  whether  at  the  time  it 
is  occupied  or  not. 


Special  Designs  of  Construction 

Shipowners,  in  contracting  for  a  new  vessel,  have  two  objects 
specially  in  view.  For  one  thing,  her  displacement  must  be 
as  little  as  possible  in  order  that  she  may  be  able  to  carry  more 
deadweight.  Then,  if  possible,  she  must  be  so  designed  as  to 
meet  the  object  aimed  at  by  the  principle  of  the  shelter  deck  ;  and 
this  principle  can  be  applied  in  more  ways  than  one. 

If  by  saving,  say,  50  tons  in  beams  and  stanchions  and 
so  forth  a  vessel's  displacement  can  be  reduced  accordingly,  then 
she  acquires  a  permanent  ability  to  carry  a  correspondingly 
increased  weight  of  cargo  with  no  addition  to  the  cost  of 
working.  This  effect  is  produced  by  novel  forms  of  construction, 
of  tubular  or  other  design,  in  which  the  necessary  strength,  or 
possibly  increased  strength,  is  obtained,  with  reduced  weight. 


40  DEDUCTIONS  FROM  THE  GROSS  TONNAGE 


Deductions  from  the  Gross  Tonnage 

One  of  the  objects  aimed  at  or  obtained  by  fixing  official 
measurements  to  vessels  is  to  afford  a  basis  for  assessment  of 
port  or  harbour  or  dock  dues — tonnage  dues.  These,  ordinarily, 
and  subject  to  the  statutor>'  powers  of  local  bodies  or  authorities, 
will  be  on  the  official,  i.e.  net  register,  tonnage.  And  if  cargo 
be  carried  outside  the  measured-in  space,  then,  in  addition,  dues 
will  be  levied  on  the  space  so  occupied.  But  the  engine-room 
space  varies  considerably  with  the  nature  or  employment  of  the 
ship,  an  Atlantic  greyhound,  for  example,  with  her  very  large 
engines,  having  a  relatively  small  net  register  as  compared  with 
her  gross.  But  she  takes  up  none  the  less  of  the  dock  or 
harbour  water,  nor  occupies  any  the  less  quay  frontage.  Take, 
for  illustration,  the  case  of  the  giant  Lusitania.  Let  us  place 
side  by  side  her  registered  tonnages  and  what,  approximately, 
these  would  be  if  she  were  an  ordinar}-  trader. 

As  registered  Tramp  Basis 

Gross     T.  30,822 30,822 

for  Engine-room         ) 
Less             22,307           ,       ^                         \  say     10,274 
and  crew-space,  etc.  J  

Net  8,515  20,548 


So  that,  on  the  tramp  basis,  this  great  30,000  ton  vessel  would 
pay  no  more  tonnage  dues  than  a  tramp  of  (gross)  13,000  tons 
(13,000  less  one-third  =  8667).  As  the  result  of  representations 
to  Parliament  a  law  has  been  passed  of  which  the  effect  will 
be  presently  in  every  case  to  limit  the  maximum  engine-space 
deduction  to  55  per  cent,  of  the  space  remaining  after  deduction 
of  the  crew  and  navigation  space.  If,  purely  at  a  guess,  we  call 
the  crew  and  navigation  space  of  the  Lusitania  1822  tons,  this 
will  leave  29,000  tons  on  which  the  engine-room  deduction  is  not 
to  exceed  55  per  cent,  or  say  16,000  tons,  or  total  deduction  say 
17,822  tons  as  against  the  present  22,307  deduction. 


FREEBOARD:    LOADLINE  41 

Freeboard :  Loadline 

It  is  now  some  forty  years  since  the  late  Mr  Samuel  Plimsoll 
started  his  crusade  on  the  subject  of  ships  which,  as  he  alleged, 
were  sent  to  sea  both  overladen  and  over-insured.  His  state- 
ments were  crude  and  exaggerated  and  for  the  most  part  would 
not  stand  the  test  of  critical  examination.  They  were,  however, 
eminently  calculated  to  appeal  to  the  man  in  the  street,  and  in 
fact  they  created  extraordinary  interest  and  indeed  excitement 
throughout  the  country.  Notwithstanding  overstatements  and 
appeals  to  the  public  conscience  which  were  dramatic  rather 
than  well-founded  he  did,  however,  make  out  a  case  for  special 
legislation.  The  hand  of  the  Government  was  in  fact  forced ; 
commissions  or  committees  were  appointed,  and  though  it  was 
declared  to  be  impossible  to  lay  down  satisfactory  rules  as  regards 
loadline,  special  enactments  were  passed  to  provide  against  over- 
loading. As  the  result,  however,  of  tentative  rules  evolved  out 
of  the  experience  of  the  skilled  officials  of  Lloyd's  Register,  it  was 
eventually  found  that  the  problem  was  by  no  means  impossible 
of  solution,  and  in  course  of  time  what  from  the  outset  was 
known  as  the  "  Plimsoll  Mark  "  became  compulsory  on  British 
vessels.  The  Board  of  Trade  is  empowered  to  fix  a  loadline  on 
practically  every  trading  vessel — all,  in  fact,  but  vessels  of  quite 
small  tonnage — with  power  to  delegate  this  duty  to  the  Committee 
of  Lloyd's  Register  or  to  other  recognised  classification  bodies. 
Hence  it  comes  about  that  above  the  Plimsoll  mark  may  some- 
times be  seen  painted  the  letters  B.T.,  L.R.,  or  B.C.  or  B.V., 
meaning  that  the  loadline  has  been  fixed  by  the  Board  of  Trade, 
Lloyd's  Register,  the  British  Corporation,  or  the  Bureau  Veritas. 
The  corresponding  mark  of  foreign  countries  may  bear  letters 
indicating  the  national  origin.  Probably  in  the  vast  majority 
of  cases  the  loadline  is  determined,  on  scientific  principles  and 
calculations,  by  Lloyd's  Register,  familiarly  known  as  "  The 
Book."  As  will  be  explained  later,  (the  Society  of)  Lloyd's 
Register  is  a  body  entirely  distinct  from  (the  Corporation  of) 
Lloyd's.  The  object  of  the  loadline  is  to  prevent  the  ship  from 
being  loaded  to  such  a  depth  in  the  water  as  to  leave  her  with 
an  insufficient  safet}-  margin,  this  safety  margin  being  termed 


42  FRKKHOARD:    LOADLINE 

her  "  freeboard."  l^Vecboard  is  "  the  heiglit  of  the  side  of  the 
ship  above  the  waterline  at  the  middle  of  her  length,  measured 
from  the  top  of  the  deck  at  the  side."  Her  loadline  is  the  line 
which  the  water  makes  along  the  ship  when  she  is  immersed  by 
her  full  cargo.  Freeboard  is  the  space  between  this  line  and  the 
upper  side  of  the  deck.  The  loadline  depends,  of  course,  in  each 
case  on  the  build  or  design  of  the  particular  shij),  and  it  is  indicated 
by  a  painted  disc  and  intersecting  line  known  conjointl)-  as  the 
Plimsoll  Mark.  The  mark  has  to  be  painted 
with  white  or  yellow  letters  on  a  dark  ground 
or  with  black  letters  on  a  light  ground.  Here 
is  the  Plimsoll  disc  : 

The  loadline  is  the  line  through  the  centre.  But  as  the 
safety  margin  known  as  the  freeboard  may  reasonably  be  less 
on  a  summer  than  on  a  winter  voyage,  or  for  voyages  ordinarily 
smooth  than  for  tho.se  notoriously  stormy,  the  mark  is  made  to 
some  extent  movable.  If,  for  example,  the  cargo  should  be 
shipped  up  a  river,  in  fresh  water,  the  greater  supporting  power 
of  the  sea  would  add  several  inches  to  the  freeboard  :  therefore 
a  fresh-water  (FW)  loadline  has  to  be  fixed.  When  loaded  to 
her  fresh-water  mark  in  summer  all  the  other  lines  would  be  im- 
mersed until  the  vessel  got  into  salt  water.  In  salt  water  the  line 
according  to  the  season  and  her  voyage  would  have  to  show. 
Next  below  the  FW  mark  is  the  Indian  Summer  (IS)  mark — the 
fine  season  between  Suez  and  Singapore.  Then  the  Summer  (S) 
mark — April  to  September,  both  included.  Then  the  Winter 
(W)  mark — October  to  March,  both  included  ;  and  the  Winter, 
North  Atlantic  (WNA)  mark.  So  that  the  complete  mark  will 
appear  thus : 


FW 


IS 

s 
vv 

WNA 


Vessels,  mainly  liners,  which  are  content,  for  all  seasons,  with 
the  lowest  mark,  or  possibly  with  a  mark  placed  even  lower,  are 


FREEBOARD:    LOADLINE  43 

in  practice  allowed  to  dispense  with  the  "  gridiron  "  and  to  show 
simply  the  disc  and  line.  The  position  of  the  disc  and  horizontal 
line  has  to  be  officially  certified,  with  the  following  provision  : — 

The  managing  owner  or  master  shall  forthwith,  on  the  delivery  to  him 
or  his  agent  of  any  such  certificate  as  aforesaid,  cause  the  same  to  be  framed 
and  put  up  in  some  conspicuous  part  of  the  ship  so  as  to  be  visible  to  all 
persons  on  board  the  same,  and  shall  cause  it  to  be  continued  so  put  up  so 
long  as  such  certificate  remains  in  force  and  such  ship  is  in  use. 

Clearly,  a  heavy  cargo  such  as  rails  or  ore  would  sink  the 
vessel  down  to  her  loadline  and  yet  leave  vacant  stowage  space. 
Without  doubt  it  was  mainly  if  not  entirely  due  to  Plimsoll's 
forcible,  if  by  no  means  always  accurate  or  justifiable  statements, 
that  the  loadline  system  ever  came  to  be  adopted.  He  declared 
that  this  vacant  stowage  space  or  safety  margin  was,  in  the 
absence  of  legal  prohibitions,  apt  to  be  more  or  less  filled  with 
cargo,  with  the  result  of  dangerously  deep  immersion.  Ship- 
owners, he  affirmed,  sometimes  resolved  to  load  up  to  the  utmost, 
and  let  the  vessel,  fully  insured,  take  her  chance.  The  Plimsoll 
mark  on  the  ship's  side  now,  in  effect,  determines  the  maximum 
weight  of  cargo  which  the  ship  shall  carry  on  her  particular 
voyage.  If  it  is  a  heavy  cargo  the  vessel  will  not  be  nearly  full. 
If  it  be  a  very  light  cargo  the  hold  may  be  crammed  with  stuff 
till  not  an  inch  of  room  remains  and  yet  her  Plimsoll  mark  may 
be  well  above  the  water.  This  is  where  the  advantage  of  a  form 
of  shelter  deck  comes  in  to  aid  the  owners  (p.  38). 

In  the  old  sailing-ship  days  the  question  of  stowage  was  of 
extreme  importance.  Ships  were  heavily  masted  and  built  with 
fine  lines  for  speed.  If  the  heavy  cargo  were  all  put  at  the 
bottom  of  the  vessel  and  the  light  stuff  all  on  top,  the  heavy 
rolling  thus  set  up  might  jerk  the  masts  out  of  the  ship.  If  on 
the  other  hand  the  heavy  stuff  were  put  at  the  top  and  the  light 
cargo  underneath,  her  centre  of  gravity  might  be  so  high  as  to 
expose  her  to  the  risk  of  capsizing  if  caught  with  too  much  sail 
in  a  storm.  Stowage,  therefore,  was  a  fine  art ;  and  not  merely 
on  the  score  of  weight,  for  one  kind  of  goods  might  make  the 
ship  dull  or  sluggish  and  another  have  the  opposite  effect. 
Consequently,  the  qualities  of  goods  from  a  stowage  or  carriage 


44  FREEBOARD:    LOADLINE 

point  of  view  had  to  be  well  understood,  and  a  captain  who 
wanted  to  get  the  most  out  of  the  sailing  powers  of  his  ship  had 
to  be  a  master  of  the  subject.  And  even  nowadays,  with  steam- 
ships built  more  or  less  like  boxes  and  with  a  minimum  of  masts 
and  spars  and  no  sails,  scientific  stowage  has  to  be  effected. 
By  the  provision  of  "  bilge  keels  ",  moreover — though  these  are 
more  particularly  in  use  in  the  case  of  passenger  vessels — 
rolling  has  been  reduced.  Bilge  keels  are  projecting  iron  plates, 
fixed  outside  the  vessel,  at  about  the  turn  of  the  bilge,  in  the 
form  of  a  sort  of  shelf,  for  a  considerable  portion  of  the  vessel's 
length,  for  the  purpose  of  reducing  rolling. 

The  rules  for  ascertaining  the  proper  loadline  for  a  vessel  are 
highly  technical  and  extraordinarily  minute.  The  Board  of 
Trade  from  time  to  time  issues  instructions  to  surveyors  con- 
taining elaborate  tables  adapted  to  every  design  of  ship.  Owing 
to  complaints  of  British  owners  that  foreign  purchasers  of  their 
discarded  vessels  loaded  them  deeper  than  was  permissible  to 
their  original  owners  and  thus  were  able  unfairly  to  compete 
with  them,  the  Board  of  Trade  rules  were  in  1906  carefully 
examined  afresh.  The  conclusion  arrived  at  was  that  having 
regard  to  improved  designs  or  methods  of  construction  the 
loadline  might  in  certain  cases  well  be  raised,  and  the  rules  were 
amended  accordingly,  with  the  result  of  an  addition  variously 
assessed  but  believed  to  be  actually  about  500,000  tons,  to  the 
carrying  capacity  of  the  British  mercantile  fleet ;  but  the  estimate 
can  only  be  a  rough  approximation.  Whether  this  action  on 
the  part  of  our  authorities  has  or  has  not  been  prejudicial  to 
safety  is  the  subject  of  much  controversy,  and  a  special  Load- 
line  Committee  has  recently  been  appointed  to  inquire  into  the 
subject  and  report. 

It  has  also  been  argued — indeed,  a  Bill  was  (unsuccessfully) 
introduced  to  give  effect  to  the  contention — that  a  loadline  for 
laden  vessels  does  not  meet  the  whole  case.  The  contention 
was  and  in  some  quarters  still  is,  that  a  Light  Loadline  also  is 
required,  for  ships  in  ballast.  It  is  claimed  that,  owing  to  the 
want  of  sufficient  ballast,  such  ships  are  sometimes  so  high  out 
of  the  water  as  to  be  unmanageable  in  heavy  weather,  and  that 
vessels  have  been  driven  ashore  in  consequence.     What  degree 


CARRYING   CAPACITY  45 

of  justice  there  may  be  in  this  contention  must  be  left  for  the 
experts,  if  they  can  do  so,  to  agree  upon. 

The  complaints  made  by  our  shipowners  against  foreign 
owners  have  already  been  mentioned.  These  complaints  were  so 
well-founded  and  gained  such  insistence  that  at  length  the  Board 
of  Trade  were,  no  doubt  reluctantly,  compelled  to  interfere. 
Reluctance  was  probable,  because,  owing  to  the  largeness  of  the 
target  which  we  offer  to  retaliatory  measures,  any  legislation 
against  foreign  shipping  must  needs  be  deprecated.  The 
Germans,  however,  presumably  impressed  by  the  reasonableness 
of  the  complaints,  besides,  perhaps,  having  no  desire  to  risk  such 
legislation,  came  to  an  amicable  arrangement.  They  so  closely 
assimilated  their  loadline  rules  to  ours  that  it  was  mutually 
agreed  that  each  should  accept  the  other's  system.  This  being 
arrived  at,  in  1909  we  brought  into  force  a  new  law  making  our 
loadline  process  applicable  to  all  shipping  loading  or  discharging 
at  our  ports.  The  following  recent  cutting  from  the  shipping 
Press  shows  the  operation  of  this  law  ; 

Sh.\rp  Fine  for  Overloading 
A  fine  of  ^60  and  costs,  or  three  months,  has  just  been  imposed  by 
the  Cardiff  stipendiary  (Mr  T.  W.  Lewis)  on  the  captain  of  the  French 
steamship  Marguerite,  for  overloading  his  vessel.  The  evidence  of  a  Board 
of  Trade  officer  showed  that  the  steamer,  which  was  about  to  proceed  to  sea 
from  the  King's  Dock,  Swansea,  was  found  to  be  overloaded,  and  29  tons  of 
coal  and  a  quantity  of  fresh  water  had  to  be  taken  out.  It  was  stated  in 
defence  that  the  mate,  who  superintended  tne  loading,  did  not  notice  that 
the  vessel  was  overladen,  and  that  he  judged  by  the  weight  of  coal  instead 
of  by  the  loadline. 

During  the  year  ending  30  June  191 3  the  vessels,  British  and 
foreign,  provisionally  detained  as  unsafe,  numbered  34,  of  which 
21  were  foreign.  The  cause  of  detention  in  nearly  all  the  cases 
was  overloading  or  improper  loading,  the  Marguerite  being  one 
of  them. 

Carrying  Capacity 

The  recorded  size  of  a  ship  we  naturally  regard  mainly  as  a 
standard  of  comparison.  We  rarely  carry  our  mind  further  and 
ask  ourselves  what  this  size  actually  means  in  the  potentiality 
of  cargo  carriage.      But  now,  just  let  us  take  an  instance  and 


46  CARRYING   CAPACITY 

work  it  out  for  ourselves  and  see  what  it  does  mean.  Let  us  take 
a  big  tramp  of  8000  tons  gross,  though  this  at  present  is  rather 
an  extreme  case.  For  an  average,  4000  tons  might  just  now  be 
fairer ;  but  let  us  take  our  extreme  case,  at  the  same  time 
remembering  that  the  great  steamships  of  the  Atlantic  Transport 
Co.,  for  example — practically  cargo  vessels — are  of  13,000- 
14,000  tons  gross.  Now  8000  tons  gross  should  mean  rather  over 
5000  tons  net,  and  each  net  ton  measurement  should  carry,  as 
we  know,  2^  freight  tons.  We  will  disregard  shelter-deck 
possibilities,  and  take  the  vessel's  cargo  at  12,500  tons,  or,  for 
the  sake  of  round  figures,  12,000  tons.  Just  to  think  of  it: 
12,000  tons!  It  does  not  convey  much  as  it  stands  ;  10,000  or 
14,000  might  convey  just  as  much  or  possibly  just  as  little  to  our 
minds.  But  measure  it  out  in  train  loads,  and  then  we  begin  to 
realise  what  the  colossal  figures  indicate.  The  average  railway 
truck  carries  8  to  10  tons ;  many  only  8.  Some  modern  trucks  will, 
it  is  true,  carry  perhaps  three  or  four  times  as  much,  but  they  are 
much  in  the  proportion  of  the  6  ft.  3  in.  men  in  an  average  crowd, 
or  something  near  it.  We  may  fairly  adopt  9  tons  as  our 
probable  average.  Now,  divide  9  into  our  12,000  and  we  get 
1333  railway-truck  loads.  Next  time  you  are  on  some  station 
platform  and  a  goods  train  comes  bumping  and  jolting  past,  if  it 
is  a  laden  train,  note  the  number  of  the  trucks.  It  will  probably 
be  less  than  30,  and  on  an  average  gradient  a  single  engine  will 
doubtless  find  this  ample.  Now  divide  30  into  our  1333,  and  we 
get  44  long  train-loads.  Next  let  us  imagine  the  1333  trucks 
all  coupled  together,  and  ignore  the  added  length  of  44  engines 
and  tenders  and  88  brake-vans.  The  '  nose  to  tail '  length  of  a 
truck — an  8-ton  truck — is  18  feet,  i.e.  6  yards.  A  9-ton  truck  would 
probably  be  longer,  but  there  would  not  be  so  many  of  them  : 
so,  for  our  rough  illustration,  we  will  assume  6  yards.  This  on 
our  1333  trucks  would  give  a  total  length  of  just  on  8000  yards, 
or  not  far  short  of  5  miles  ;  and  all  out  of  one  ship. 

Shore  Clearance 

We  have  reviewed  the  carrying  capacit)-  of  the  ships,  but 
there  is  another  and  a  very  important  side  to  it,  shore  clearance. 
We    read,   sometimes,  of  some  remarkable  new    invention    by 


SHORE   CLEARANCE  47 

which  bulk  cargoes  may  be  discharged  out  of  a  ship  like  coal 
down  a  shoot  or  water  over  a  weir  ;  and  we  wonder.  The 
greater  cause  for  wonder  is  rather,  however,  how  this  mass 
discharged  is  going  to  be  cleared  away  to  allow  of  a  continuance 
of  the  out-pouring — how  the  empty  trucks  are  to  be  marshalled 
and  the  full  ones  moved  away  to  keep  pace  with  it.  And  in  fact 
at  a  purely  "  railway  port  "  the  difficulty  is  sometimes  serious. 
We  read  in  our  own  country  of  quays  being  blocked,  and  at 
continental  ports  a  deficiency  of  trucks  sometimes  holds  up  the 
port,  to  the  exasperation  of  shipowners,  whose  costly  vessels  are 
kept  idle,  or  possibly  of  charterers,  who  may  have  to  pay 
demurrage.  Our  own  quays  are  sometimes  blocked,  but  the 
following  recent  cutting  from  the  Shipping  Gazette,  on  the 
subject  of  our  Consul-General's  observations  on  the  great  port 
of  Antwerp,  shows  the  effects  on  that  continental  Clapham 
Junction  : 

The  true  view  of  the  situation  so  far  as  Antwerp  is  concerned  seems  to  be, 
not  that  trade  is  in  any  way  falling  off,  but  that  the  ability  to  deal  with  still 
more  trade  is  restricted  until  the  port  is  the  subject  of  considerable  expansion. 
Sir  Cecil  Hertslet  says  there  can  be  no  doubt  that,  as  the  port  is  at  present 
constituted,  the  limit  of  shipping  which  can  conveniently  be  accommodated 
has  been  nearly  reached,  and  that  until  new  accommodation  can  be  offered, 
through  the  placing  in  use  of  new  docks,  there  is  but  little  prospect  of  any 
considerable  augmentation  of  shipping.  The  Consul-General  gives  the 
subjoined  picture  of  the  existing  situation  : 

"At  present  the  difficulty  of  accommodating  the  shipping  of  the  port  is  due 
to  the  fact  that  rapidity  of  despatch  is  greatly  retarded  by  the  quantity  of 
goods  which  have  to  be  dealt  with.  It  frequently  happens  that  a  vessel 
belonging  to  a  regular  line  will  arrive  at  her  allotted  berth,  only  to  find  that, 
owing  to  pressure  of  space,  another  vessel  (possibly  an  irregular  one)  has  had 
to  be  temporarily  berthed  at  the  same  quay.  The  goods  discharged  from  the 
irregular  vessel  will  be  lying  on  the  quay,  and  the  discharging  and  subsequent 
loading  of  the  regular  vessel  are  much  impeded  on  this  account ;  hence  delay 
in  despatch.  Again,  a  vessel  may  have  a  berth  allotted  to  her,  and  after  the 
goods  have  been  ordered  down,  she  may  have  to  shift  berth  to  another  part  of 
the  quays  or  docks,  entailing  further  delay,  not  only  in  moving  the  vessel,  but 
in  carting  the  goods  to  another  part  of  the  port.  Delay  is  not  the  only  draw- 
back, for  frequently  considerable  expense  is  involved." 

This,  we  may  take  it,  is  not  an  over- statement  of  the  case.  What  is  de- 
scribed as  happening  is  exactly  what  must  happen  where  the  trade  of  a  port 
has  outgrown  the  accommodation.  It  suggests  rather  a  lack  of  prevision, 
perhaps,  but  we  are  entitled  to  assume  that  the  growth  of  Antwerp  has  been 
at  a  more  rapid  rate  than  the  authorities  could  have  anticipated. 


48  SHORE   CLEARANCE 

London,  as  \vc  know,  is  essentially  a  barge  port.  When  bulk 
cargoes  arc  in  c]uestion,  the  discharge  can  be  made  overside  into 
capacious  barges  from  various  holds  at  once.  Or  the  vessel  may  lie 
alongside  a  grain  warehouse  or  elevator,and  her  cargo  be  exhausted 
out  of  her  by  pneumatic  suction,  or  scooped  out  of  her  by  rapidly 
moving  dredges — or  by  both  means  simultaneously.  Oil  in  bulk, 
too,  can  be  discharged  through  lengthy  pipe-lines  into  more  or 
less  distant  reservoirs.  But  when  a  mixed  cargo,  the  contents 
of  a  "  general "  ship,  is  in  question  it  has,  as  a  rule,  to  be  landed 
into  shed,  sorted  to  marks,  and  inspected  by  the  Customs. 
Then  it  goes  cither  into  barges  waiting  at  the  quay,  or  into 
waggons,  or  into  railway  trucks  :  or  some  of  it  may  be  trucked 
into  the  dock  warehouses.  If  the  port  is  not  a  barge  port,  then, 
of  course,  the  removal  has  mainly  to  be  by  land,  and  miles  of 
railway  sidings  are — or  ought  to  be — available.  As  a  broad, 
general  rule,  the  facilities  of  each  port  are  only  about  abreast  of 
the  normal  needs.  In  this  the  case  resembles  that  of  the  Post 
Office.  When,  however,  the  Post  Office  finds  the  Christmas 
pressure  close  upon  it,  large  numbers  of  auxiliary  hands  are 
taken  on.  But  when  abnormal  pressure  hits  the  docks — and 
with  docks  it  is  a  case  sometimes  of  feast  and  sometimes  of 
fast — no  addition  can  be  made  to  shore  space  or  to  sidings.  And 
if,  some  day,  one  of  our  great  ports  should  be  temporarily  thrown 
out  of  operation,  the  pressure  on  the  others  would  be  serious. 
And  "  any  port  in  a  storm  "  is  no  longer  true  :  a  shallow  port 
for  a  deep-draught  ship  is,  practically,  no  port  at  all.  In  London 
the  quays,  at  docks  and  wharves  conjointly,  are  understood  to 
aggregate  44  miles  in  length,  and  though  they  are  not  likely  to 
be  all  in  use  at  once,  their  total  accommodation  speaks  volumes 
for  the  potential  requirements  of  the  port. 

"Big  Ships,  Cheap  Ships" 

In  speaking  of  big  ships  we  are  apt  to  lose  sight  of  the 
distinction  between  the  passenger  vessel  and  her  purely  trading 
sister,  or  half-sister.  By  the  standard  of  ocean  trade  (as  distin- 
guished from  passenger  carriage)  a  cargo  vessel  may  be  regarded 
as  very  big  and   yet  not  be  nearly  so  big  as  a  comparatively 


"BIG   SHIPS,   CHEAP   SHIPS"  49 

small  vessel  amongst  the  mammoth  liners.  They  belong  to 
entirely  different  categories,  with  primary  uses  quite  distinct. 
And  notably  there  is  this  great  difference  between  them  :  the 
passenger  vessel  is  essentially  an  ocean  ferry-boat,  running  back 
and  forth  between  fixed  termini.  The  limits  to  her  size  are  only 
those  imposed  by  the  particular  termini,  and  port-competition 
forces  the  passenger  termini  to  come  up  to  the  requirements  of 
these  great  vessels.  The  greatest  ferry  of  all,  and  that  affording 
unlimited  prospects  of  development,  is,  of  course,  the  great 
North- Atlantic  ferry,  because  one  terminus  is  a  focus  for  the 
travelling  population  of  the  New  World,  and  the  other  for  that 
of  the  Old,  with  an  always  increasing  population  behind  each. 
From  this  point  of  view  there  is  nothing  to  prevent  the  size  of 
the  liners  from  indefinite  increase  ;  and  for  the  passenger,  Size 
means  Safety.  The  ill-fated  Titanic  sank,  it  is  true,  mammoth 
as  she  was  ;  but  probably  a  smaller  vessel,  less  subdivided  by 
bulkheads,  would  have  gone  down  like  a  stone,  instead  of 
remaining  afloat,  after  her  fatal  impact,  for  some  hours.  What, 
however,  seems  likely  to  put  the  brake  upon  the  increase  of  the 
size  of  these  ocean  ferry-ships  is  the  immense  pecuniary  outlay 
placed  at  risk.  These  great  ships  may  cost  some  ;^30  or  ^40 
per  gross  ton  to  build,  and  the  insurance  market,  for  one-and- 
a-half  million  sterling,  is  not  unlimited.  Underwriters  accept 
their  ordinary  "  line  "  at  market  rates,  but  when  pressed  to  accept 
a  larger  risk,  which  perhaps  they  would  rather  not  incur,  they 
may  put  up  the  rate  of  premium.  And  this  is  where  the  brake 
is  likely  to  come  in,  on  further  large  increases^ 

The  ocean  trader  is  on  quite  a  different  footing.  She  has  to 
be  ready  to  go  anywhere ;  and  to  be  very  big  is  to  disqualify 
herself  for  any  but  the  deepest  ports.  Moreover,  to  be  too  big 
is  to  run  the  serious  risk  of  not  being  able,  especially  in  dull 
times,  to  obtain  a  full  cargo  ;  and  there  is  no  advantage  in  being 
a  big  ship  unless  you  can  fill  your  space  with  cargo.  On  the 
contrary,  size  then  becomes  a  disadvantage.  So  that  at  present 
and  probably  for  some  time  to  come  the  best  size  for  an  ordinary 
tramp  or  trader  will  be,  as  a  maximum,  perhaps  7000  or  8000 
tons,  or  thereabouts,  though  there  may  be  ships  considerably 
1  See,  as  to  this,  p.  165. 

o.  4 


50  "BIG   SHIPS,   CHEAP   SHIPS" 

larger  whose  owners  have  in  view  a  special  trade.  It  may  well 
be,  moreover,  that  the  traders  will  not  care,  as  a  common 
practice,  to  have  their  market  swamped  with  an  overwhelming 
cargo  ;  though  this  is  rather  another  question.  The  fact  that 
size  means  cheapness  has  now  been  fully  grasped,  and  the  size 
of  all  vessels  is  steadil)-  advancing.  The  Suez  Canal  figures 
afford  interesting  evidence.  The  average  net  tonnage.  Canal 
measurement,  of  the  steamers  passing  through  the  Canal,  has 
been  as  follows  : 

year  tons  year  tons 

1877,     1 41 6  1897,     2646 

1887,   1882         I912,   3773 

so  that  between  1887  and  1912  the  average  tonnage  has  doubled 
itself,  and  it  is  only  recently  that  the  economics  of  size  have 
obtained  general  acceptance. 

And  now,  why  does  size  mean  cheapness  .■*  Well,  the  sea 
traders  are  learning  what  every  tradesman  knows  on  land,  though 
even  his  knowledge  of  this  is  comparatively  recent.  The  trades- 
man knows  well  enough  that  if  he  can  acquire  four  houses  in  a  row 
and  make  a  single  large  store  of  them,  two  and  two  will  make 
five;  stairways,  passages,  staff-rooms,  landings  and  lobbies,  made 
available  for  trade  uses,  will  give  him  the  equivalent  of  another 
house.  Also,  he  will  economise  in  management  and  staff.  And 
it  is  very  much  the  same  with  shipping.  One  big  vessel  costs 
less  to  build  than  four  little  ones  aggregating  in  the  same 
tonnage.  If  two  vessels,  indeed,  will  cost  together  ;^40,cxx)  to 
build,  a  single  vessel  of  equivalent  carrying  capacity  can  be 
obtained  for  ^5000  less.  Or,  to  put  it  another  way,  if  for 
£\Ofyy:)  we  can  purchase  two  vessels  of  a  joint  carriage  capacity 
of  4000  tons,  by  spending  the  same  sum  on  a  single  vessel  we 
can  probably  get  a  carrying  capacity  of  4700  tons.  And  so  with 
economy  in  working.  The  single  big  vessel  will  need  less  officers 
and  crew  than  two  vessels  of  equivalent  capacit)',  and  she  will 
carry  more  cargo  and  require  less  bunker  and  machinery  space. 
Then  the  question  of  skin  friction  or  of  the  submerged  surface 
comes  in — a  factor  of  no  small  importance  not  long  realised. 
Given  two  ships  of  the  same  model,  one  twice  as  long  as  the 
other,  while  the  larger  ship's  resistance  will  be  about  four  times 


THE   MAIN    ROUTES   OF   SHIPPING  51 

that  of  the  smaller,  her  cubical  contents,  as  the  measure  of  her 
earning  power,  will  be  eight  times  as  great. 

But  if  "big  ships,  cheap  ships"  is  true,  "deep  ships,  cheap 
ships  "  is  truer  still,  though  the  big  ship  will  probably  also  be 
the  deep  ship.  In  a  paper  read  before  the  Institute  of  Naval 
Architects  not  very  long  ago,  it  was  stated  that,  the  draught  of 
the  vessels  being  the  same,  the  cost  of  carrying  a  ton  of  cargo 
5000  nautical  miles  would  be  for  a  ship  500  ft.  long  Si".  6d. ; 
600  ft.  (still  with  the  same  draught)  Qi".  6d. ;  700  ft.,  i  \s.  2d.,  the 
cost  increasing  with  the  vessel's  length.  Increase  of  draught 
would,  however,  put  a  very  different  aspect  on  it.  If  it  were 
increased  in  proportion  to  the  length,  the  respective  draughts 
would  be  28  ft,,  35  ft.,  and  40.8  ft.,  and  the  cost  then,  instead  of 
being  8^-.  6d.,  ^s.  6d.  and  lis.  2d.,  would  be  ^s.  6d.,  "js.  6d.  and 
js.  od.,  the  difference  between  the  28  ft.  and  the  35  ft.  showing 
a  saving  of  2s.  a  ton,  and  the  saving  on  the  40.8  ft.  4J.  2d.  a  ton. 
The  figures  are  interesting  as  illustrating  a  principle  or  proposi- 
tion, but  40.8  ft.  or,  for  that  matter,  35  ft,  are  rather  extreme 
illustrations  for  a  cargo  carrier.  About  28  ft.  seems  enough  for 
most  cargo  vessels  just  at  present. 

The  Main  Routes  of  Shipping 

As  with  land  communications,  so  with  ocean  routes,  there 
are  certain  great  trunk  roads,  with  feeders  and  cross-tracks 
innumerable.  But  while  geographical  features  and  proprietary 
rights  make  the  land  routes  a  narrow  thread  which  must  be 
closely  and  strictly  followed,  the  width  of  the  ocean  routes  is 
undefined,  and  scientific  navigation  may  leave  the  direct  line  far 
to  the  right  or  left.  And  whereas  the  land  route  ends  or  begins 
for  the  most  part  at  some  great  terminus  to  which  many  roads 
converge,  on  the  seaboard  there  are  alternative  termini,  often  many 
hundred  miles  apart,  thus  further  widening  the  ocean  routes. 
Still,  giving  due  weight  to  these  material  factors  or  considerations, 
we  have  no  difficulty  in  identifying  the  great  main  routes  o^f 
sea-borne  commerce.  In  the  absence  of  statistical  figures  one 
may  be  mistaken  as  to  the  rightful  order  of  their  importance, 
but  first  and  greatest  of  all,  at  any  rate  from  our  British  point 

4—2 


52  THE    MAIN    ROUTES   OF   SHIPPING 

of  view,  may  be  placed  the  highway  to  the  E^ast,  running  in 
a  narrow  and  well-defined  track  from  the  Straits  of  Gibraltar  to 
the  Gulf  of  Aden.  Indeed,  we  might  start  it  from  the  mouth  of 
the  English  Channel — the  junction  of  the  tracks  from  Glasgow 
and  Liverpool  on  the  West  and  London  and  the  North  Sea  ports 
on  the  East.  But  only  at  Gibraltar  do  the  steamers  from  New 
York  and  other  North  American  ports  join  the  common  track 
for  Suez.  Then  at  Aden,  while  the  great  main  road  keeps  on 
to  Colombo,  there  are  important  branchings-ofif.  Sharp  to  the 
South  is  the  track  to  Zanzibar,  Mauritius  and  Delagoa  Bay. 
Sharp  to  the  North  the  track  to  the  Persian  Gulf.  North-east 
to  Karachi  and  Bombay.  At  Colombo  there  is  a  further 
splitting-up,  for  Calcutta  and  Burmah  to  the  North,  for  Australia 
to  the  South,  and  eastward  for  ports  beyond  the  Straits  of 
Singapore.  Marseilles  and  the  Italian  ports  add,  of  course,  to 
the  traffic  within  the  Straits  of  Gibraltar. 

The  next  great  route — an  American  expert  writer  puts  it 
first — is  that  of  which  the  terminals  on  the  West  are,  say, 
Charleston  and  Halifax,  and  the  ports  between  ;  and,  on  this 
side,  the  various  ports  to  or  from  which  the  routes  diverge  at  the 
entrance  of  the  Channel,  with  Liverpool  as  an  important  factor 
in  the  divergence. 

Third  may  probably  be  placed  the  Cape  route,  the  great 
highway  to  South  Africa  and  beyond — beyond  to  Australasia 
and  the  ports  of  South-East  Africa  up  to  Delagoa  Bay.  In  the 
days  of  sailing  ships,  a  notable  track,  and  still  followed  by  them, 
but  in  ever-decreasing  numbers. 

Then  the  South  American  highway,  for  a  portion  of  its 
length  followed  by  the  steamers  for  Brazil  and  the  River  Plate. 
Steamers  for  the  Pacific  ports  of  South  America,  and  sailing 
vessels  to  and  from  the  Pacific  ports,  both  north  and  south, 
continue  on  the  track,  and  home-coming  vessels  from  New 
Zealand  join  it.  The  opening  of  the  Panama  Canal  will  create 
a  new  trunk  line,  the  effects  of  which  may  be  far-reaching. 

On  the  Pacific,  in  the  north,  is  the  beginning  of  a  great  trunk 
line,  which  also,  so  far  as  cargo  is  concerned,  may  be  much 
affected  by  the  cutting  of  the  Isthmus.  At  present  it  is  followed 
by  magnificent  passenger  steamers  and  by  many  tramps,  bridging 


GIANT   SHIPPING   LINES  53 

the  space  between  China,  Manila  and  Japan,  and  Vancouver, 
Puget  Sound  and  San  Francisco,  in  the  case  of  the  latter  port 
often  by  way  of  Honolulu, 

The  sixth  great  highway  is  the  passenger  line  which  connects 
Australia  and  New  Zealand  with  Vancouver  and  San  Francisco. 
The  Australasian  steamers  used  to  carry  cargo  between  San 
Francisco  and  Honolulu  on  their  voyage  across  the  Pacific,  but 
the  taking  over  of  the  island  by  the  States  has  now  brought  this 
trade  within  the  limits  of  American  privilege. 

As  regards  the  route  to  the  West  Indies,  at  the  present  time 
it  is  neither  important  nor  distinct.  The  trade  is  divided  between 
Europe  and  the  United  States,  and  to  a  certain  extent  the  route 
from  Europe  is  that  to  South  America.  At  one  time  there  was  a 
considerable  Australasian  passenger  traffic  to  and  from  Liverpool 
via  Panama,  but  probably  it  was  the  opening  of  the  trunk  rail- 
way lines  across  the  North  American  Continent  to  San  Francisco 
and  Vancouver  which  killed  the  Panama  route.  Presently  the 
opening  of  the  Panama  Canal  may  deal  a  return  blow  to  the 
steam  lines  which  now  connect  Australasia  with  San  Francisco 
and  Vancouver. 

Giant  Shipping  Companies 

Whitaker's  Almanac  ("  Mercantile  Fleets  ")  supplies  year  by 
year  a  list  of  the  world's  principal  shipping  companies  in  the  order 
of  their  importance,  with  the  total  tonnage  and  the  number  of 
vessels  in  each  case.  The  Hamburg- American  company,  which  has 
been  said  to  be  the  largest  carrier  of  ocean  passengers  in  the  world 
— emigrants,  of  course,  included — and  the  North  German  Lloyd 
head  the  1914  list.    Here  are  the  figures  of  the  first  five  on  the  list. 


Tons  Vessels 

Hamburg- American       ...  1,306,819  ...  431 

8 1 1 ,000  ...  1 68 

660,000  ...  142 


North  German  Lloyd 

British  India 

P.  &0 

White  Star      


546,000     ...       70 
491,000     ...       33 

If,   however,  the  Elder-Dempster  Royal-Mail  combination, 
with  its  various  absorptions,  be  regarded  as  a  single  company, 


54  GIANT   SHIPPING   LINES 

then  this  great  combination,  and  not  the  Hamburg-American, 
should  head  the  list.  Its  total  tonnage  was,  indeed,  recently 
stated  to  be  1,497,938  tons.  The  lines  of  which  this  important 
group  is  composed,  however,  or  certain  of  them,  still  appear  on 
the  shipping  lists  under  their  several  names,  as  independent 
companies.  As  bearing  on  what  has  been  already  remarked 
respecting  the  confusion  and  the  wide  difference  between  gross 
and  net  tonnage,  it  may  be  observed  that  the  column  in  Whitaker 
is  headed  simply  "  Total  Tonnage."  The  figures  given  are, 
however,  as  elsewhere  stated,  gross.  Whenever,  indeed,  tonnage 
is  quoted  by  owners,  they  naturally  show  it  at  its  biggest  and  its 
best.  The  writer  believes,  indeed,  that  he  has  sometimes  seen 
the  still  greater  "  lift  "  of  a  vessel  quoted  as  her  tonnage. 

In  the  Whitaker  list,  it  is  tonnage  that  counts.  A  company 
owning  comparatively  only  a  few  vessels,  takes  precedence,  by 
reason  of  the  result  of  their  great  dimensions,  of  the  company 
which  possesses  many  more  ships,  but  of  smaller  tonnage.  The 
total  tonnages  of  the  British  India  and  the  White  Star,  for 
example,  are  not  very  widely  apart,  but  the  British  India  Co. 
has  more  than  four  times  the  number  of  vessels  owned  b)'  the 
White  Star.  The  British  India  company,  with  its  total  of  142 
vessels,  is  first  on  our  British  list  in  point  of  numbers.  The 
figures  vary,  of  course,  from  year  to  year. 

Till  recently,  the  German  and  the  British  systems  of  ship- 
owning  have  differed  widely.  The  German  method,  broadly 
stated,  is  that  of  single  "omnibus"  or  "portmanteau  "  companies, 
working  many  lines,  and  ready  at  any  time  to  add  a  vessel  to 
one  of  the  lines  temporarily  short  of  tonnage,  or  to  take  one  from 
another  where  the  converse  is  the  case.  Look,  for  example,  at 
that  mammoth  enterprise  which  heads  the  above  list,  the  many- 
lined  Hamburg-American  company.  Then,  again,  there  is  the 
also  many-lined  North  German  Lloyd.  Both  these  companies 
own  and  run  many  separate  lines,  but  all  in  a  single  company 
and  with  a  single  capital,  one  bow  with  many  strings.  The 
Germans  are,  in  fact,  collectivists  from  top  to  toe.  They  possess 
in  a  marked  degree  the  invaluable  national  qualities  of  organisa- 
tion and  co-ordination.  A  recent  English  reference  to  the 
satisfactory  progress  of  ship-building  in  Germany  added  :  "  But 


GIANT   SHIPPING   LINES  55 

it  is  remarkable  that  business  in  tramp  steamers  for  Germany  is 
practically  at  a  standstill,  a  circumstance  which  is  due  to  the 
poor  results  obtained  during  the  last  few  years  by  German  tramp 
steamship  owners."  But  it  is  not  really  remarkable  at  all  :  the 
successful  ownership  of  tramps  needs  the  individualist,  born  and 
bred  ;  tramp-owning  and  collectivism  do  not  go  hand  in  hand. 
And  it  is  the  machine  mind  which  has  built  up  the  great  German 
shipping  companies — companies,  not  lines — and  which  renders 
these  companies,  with  their  co-ordination  and  co-operation  and 
their  fleet  of  opposition-breakers,  so  dangerous  to  competitors. 
As  regards  the  fighting-fleet  referred  to,  it  is  a  unique  organisa- 
tion specially  constituted  by  certain  syndicated  lines  for  defending 
their  interests  against  the  attacks  of  "  outsiders "  of  whatever 
nation  consisting :  a  fleet  of  nine  vessels  owned  amongst  ten 
lines,  having — the  fleet — a  capital  value  of  6,000,000  marks.  The 
fleet  was  "  mobilised  "  to  carry  on  a  rate  war  in  the  East  Asiatic 
trade.  The  possibilities  of  such  a  fighting  force  are,  however, 
far-reaching  and  quite  enough  in  themselves  to  suggest  reflections 
on  the  comparative  advantages  of  the  German  and  the  British 
shipowning  systems.  And  the  co-operative  genius  of  the  Teuton 
carries  him  far,  even  to  the  extent  of  co-operation  between  rival 
lines.  The  German  companies  are  understood  to  hold  shares  in 
one  another's  lines,  and  have  therefore  the  strongest  reasons — 
the  notable  "  split  "  between  the  two  pre-eminent  companies  not- 
withstanding— for  standing  in  together  instead  of  adopting  a 
devil-take-the-hindmost  policy.  Some  day,  of  course — any  day, 
in  fact — the  Germans,  stirred  by  the  marvellous  profits  made  by 
British  tramp-owners  in  the  great  boom  of  191 2-1 3,  may  decide 
on  a  great  tramp-owning  company  for  collective  or  organised 
competition  with  our  more  or  less  separately  owned  tramps. 
Meantime,  however,  70  per  cent,  of  our  shipping  is  said  to  be  of 
the  tramp  or  individualist  class,  and  the  generations  of  dearly- 
bought  experience  possessed  by  our  tramp-owners  is  in  itself  an 
invaluable  asset. 

Probably  our  British  individualism  leads  us  to  greater 
enterprise,  but  on  the  other  hand  a  "  portmanteau "  company 
owning  many  lines  can,  by  the  use  of  "  through  "  bills  of  lading 
and  by  other  means,  make  several  lines  play  very  usefully  into 


S6  GIANT   SHIPPING   LINES 

the  luinds  of  one  another.  Moreover,  a  sudden  trade-pressure 
in  one  hne,  and  a  temporary  surplus  of  tonnage  in  another, 
may  lend  themselves  to  valuable  adjustment. 

There  are,  then,  three  great  divisions  into  which  deep-sea 
shipping  may  be  divided  : 

(i)  The  great  portmanteau  company  owning  several  or 
many  lines ; 

(2)  The  company  which  is  in  itself  a  line  ;  and 

(3)  The  tramps,  singly  owned  or  in  a  fleet,  running  in  no 
line  at  all. 

Now,  tramp-owning  is  with  us  an  industry  which  in  the  long 
run  is  carried  on  with  great  success — a  most  valuable  factor  in 
the  national  prosperity.  The  owners  have  their  bad  times  and 
their  good  ;  but  on  the  whole,  and  notably  at  times,  the  enterprise 
brings  wealth  to  those  engaged  in  it.  It  is  admirably  adapted 
to  the  individualist  disposition — one  might  almost  say,  to  the 
sporting  proclivities — of  the  race  ;  and,  by  the  way,  some  of  our 
tramp-owners  are  sportsmen  of  the  first  rank.  Tramp-owning, 
then,  is  likely  to  remain  with  us  ;  at  any  rate  let  us  hope  so. 

With  the  Company  lines  a  change  is  certainl}-  in  progress, 
whether  on  the  principle  of  "/as  est  et  ab  hoste  doceri"  or  other- 
wise does  not  matter.  But  the  principle  of  two  and  two  making 
five,  which  started  with  the  shops,  and  presently  affected  the 
insurance  companies  and  banks,  with  the  result  of  one  absorption 
or  amalgamation  after  the  other,  has  at  length  extended  itself  to 
the  shipping  lines,  as  well  as  to  the  tramp-owner.  The  latter 
sells  two  of  his  old  ships  to  the  foreigner,  and  builds  for  the  price 
of  two  new  vessels  a  single  ship  which  will  carry  considerably 
more  ;  or  renews  the  capacity  of  the  two  ships  by  having  built 
for  himself  a  vessel  equivalent  in  tonnage  to  the  two,  but  costing 
for  the  single  vessel  substantially  less.  And  so  with  the  Company 
lines.  From  time  to  time  successively  one  big  company  has 
practically  bought  up  another,  while  other  companies,  A  and  B, 
say,  have  joined  their  forces.  And  the  process  is  likel}',  as 
time  goes  on,  to  find  further  imitators.  And  not  without  reason. 
For  companies  C  and  D,  which  have  long  worked  and  got  on 
well  together  in  friendly  rivalry  side  by  side,  are  both  made 
uneasy  by  the  amalgamations  effected,  in  progress  or  rumoured. 


THE   ATLANTIC   "COMBINE"  57 

For  if  strong  company  E  should  buy  up  C,  or  buy  up  D,  what 
would  be  the  position  of  the  other  ?  This  uneasiness  may  drive 
C  and  D  to  amalgamate  or  may  drive  C,  or  may  drive  D,  into 
the  open  arms  of  E,  lest  the  other  should  be  beforehand  in  the 
deal.  The  wind  has  been  let  into  the  wood,  and  sooner  or  later 
the  result  seems  likely  to  be  an  increase  of  the  portmanteau 
system  of  "one  company,  several  lines",  and  the  further  dis- 
appearance of  well-known  single  lines — unless,  indeed,  absorbed 
or  amalgamated  companies  should  continue,  as  in  the  case  of  the 
Elder  Dempster  combinations,  to  run  in  their  old  name,  though 
having  ceased  to  exist  as  independent  companies.  Across  the  sea 
the  change,  with  its  possible  further  extension,  is  by  no  means 
favourably  regarded.  The  competition  and  the  danger  for  the 
German  companies  are  viewed  with  some  apprehension.  The 
well-tried  English  business  instinct  will,  it  is  feared,  "have  the 
strength  and  endurance  to  succeed  in  this  direction  as  in 
others  "  ;  from  which  the  conclusion  is  formed  that  "  the  German 
companies  will  probably  be  compelled  to  meet  these  important 
English  efforts  by  similar  efforts  of  their  own."  Who  lives 
longest  will  see  most. 

The  Atlantic   "Combine",   or   International 
Mercantile   Marine   Company 

One  of  the  many  stories  told  of  the  great  American  million- 
aire financier  after  his  death  was  one,  in  effect,  as  follows  : — 
He  had  been  asked  what  had  been  the  price  paid  for  one  of  his 
recent  purchases.  His  somewhat  testy  reply  was  that  he  did 
not  know  ;  that  he  had  told  Billy  So-and-so  to  buy  it,  and  that 
Billy  had  bought  it — "  the  price  did  not  matter."  He  wanted  it, 
and  he  had  bought  it.  The  story  may  or  may  not  throw  light 
on  his  purchase  of  the  English  shipping  lines. 

The  news,  in  1902,  of  the  American  purchase  or  practical 
control  of  nearly  all  of  our  great  American  Atlantic  shipping 
lines — the  American,  Atlantic  Transport,  Dominion,  Leyland, 
Red  Steir,  National  and  White  Star — created  excitement  in  the 
shipping  and  the  financial  world,  and  greatly  disconcerted  or 
even  startled  all  the  nation.  Who  had  done  it,  and  why  ?  And 
what  was  the  price  .-'     The  question  who  had  done  it  was  soon 


58  THE    ATLANTIC   "COMBINE" 

answered  :  it  was  Mr  Pierpont  Morgan,  or  his  firm,  or  the  great 
trans-continental  or  other  railway  lines  in  which  his  influence 
and  power  predominated.  The  "why"  was  a  question  much 
more  difficult.  It  was  not  convincingly  answered  at  the  time, 
and  even  to-day  there  seems  no  absolute  agreement  on  the  point. 
Many  reasons  or  explanations  were  propounded.  The  American 
traders,  it  was  said,  were  responsible  for  the  deal,  in  order  that 
they  might  share  the  profits  gained  by  carrying  the  American 
ocean  trade.  The  railway  companies,  said  others,  saw  in  an 
amalgamation  of  the  lines,  with  themselves  as  the  predominating 
power,  an  opportunity  to  reduce  the  cost  of  working,  and  so  to 
increase  the  profits.  Then,  again,  it  was  suggested  that  one  of 
the  presumed  purchasing  railways  was  not  in  a  very  prosperous 
condition,  and  that  in  the  re-shuffle  there  would  be  opportunity 
for  a  desired  recoupment.  There  may  have  been  truth  in  any 
one,  or  possibly  in  all,  of  these  conjectures.  But  perhaps  the 
explanation  is  quite  adequate  that  Mr  Pierpont  Morgan  wanted 
it.  There  may  have  been  some  specific  reason  for  this  desire,  or 
— and  this  seems  just  as  likely — it  may  have  been  that  the  love  of 
Trusts  in  financial  high  places  in  America  was  of  itself  sufficient 
motive,  without  going  beyond  it.  A  Trust,  of  course,  is  ordinarily 
regarded  as  a  means  to  a  satisfactory  pecuniary  end  ;  but  it  may 
be  that  in  estimating  this  end  in  the  case  before  us,  a  view  was 
taken  which  was  unduly  optimistic.  The  idea,  presumably  or 
perhaps,  was  that  if  railway  systems  terminating  on  the  Atlantic 
coast  could  get  control  of  the  steam  lines  which  connected  with 
them,  these  could  be  used  to  great  advantage  as  part  and  parcel 
of  the  railwa)'  systems.  And  if  the  whole  lot  of  the  lines  could 
have  been  obtained,  the  Cunard  included,  they  could  presumably 
have  all  been  run  under  a  single  management,  and  therefore  at 
less  cost  and  so  at  greater  profit.  This  consideration,  by  the 
way,  is  a  common  factor  in  amalgamations,  and  in  the  long  run 
it  may  be  justified.  But  the  long  run  and  the  present  or  the  near 
future  are  different  things,  and  as  a  matter  of  fact  it  very  often 
proves  that  the  economies  anticipated  remain  for  some  time  in 
the  air.  The  faithful  servants,  many  of  long  years'  service,  of  a 
company  cannot  be  dismissed  off-hand  :  they  must  be  pensioned 
or  adequately  compensated.    The  highly-paid  managers,  working. 


THE   ATLANTIC    "COMBINE"  59 

perhaps,  under  time  agreements,  must  be  at  least  as  well  treated. 
As  to  the  directors,  is  it  likely  that  they  are  going  to  recommend 
to  the  shareholders  a  deal  which  will  leave  themselves  out  in 
the  cold  without  ample  compensation  ?  There  may  be  an 
immediate  or  early  saving  on  office  premises,  but  the  other 
economies  are  apt  to  take  some  years  in  accruing. 

But  possibly  a  motive  common  to  most  or  many  Trusts  was 
not  without  its  influence  and  attractions  in  the  present  case.  If 
the  buyers-up  of  the  whole  British  fleet  of  Atlantic  passenger 
carriers  could  also  buy  up  or  come  to  a  working  agreement  with 
the  Continental  ocean  lines,  the  passenger  fares  could  be  so 
advanced  as  to  produce  greatly  improved  profits.  If  this  project 
was  in  fact  more  or  less  at  the  back  of  the  transaction,  it  must 
have  been  considerably  upset  by  the  refusal  of  the  Cunard 
company  to  come  into  the  deal.  The  Cunard  company  just  - 
about  this  time  entered  into  negotiations  with  our  own  Govern- 
ment, as  the  result  of  which  the  latter  agreed  to  finance  the 
building  of  two  great  fast  liners,  which  in  due  course  were  ^ 
launched  as  the  Maiiretania  and  Lusitania.  No  doubt  the 
failure  to  acquire  the  Cunard  ships  and  thus  obtain  practically  a 
monopoly  of  the  British  Atlantic  American  lines  must  have  more 
or  less  upset  the  calculations  of  the  purchasers.  But,  finally, 
there  may  conceivably  have  been  yet  another  motive  which  at 
some  future  date  may  conceivably  "  turn  up  trumps."  When  the 
deal  was  effected,  it  was  practically  impossible  for  American 
subjects  to  buy  and  sail  foreign-built  vessels  under  the  American 
flag :  a  tax  on  such  purchases  rendered  them  prohibitive.  This 
might  not  have  mattered,  or  mattered  so  much,  if  the  American 
yards  could  turn  out  ships  at  prices  at  all  equivalent  to  those 
prevailing  in  Britain  or  on  the  Continent  ;  but,  as  a  fact,  the 
American  cost  is  so  much  in  excess  of  the  British  that  on  this 
ground  alone  competition  of  American-built  ships  against 
foreign-built  is  practically  out  of  the  question.  The  much 
greater  cost  of  running  American  vessels  and  several  other 
comparative  disadvantages  are,  moreover,  also  opposing  factors. 
Possibly  the  promoters  of  the  scheme  may  not  have  fully 
appreciated  this  situation,  and  may  have  had  the  idea  that  the 
efforts  always  being  made  to  obtain  an  alteration  of  the  fiscal 


6o  THE    ATLANTIC   "COMBINE" 

law  against  foreign-built  ships  would  some  da)'  prove  successful, 
the  opposition  of  the  builders  notwithstanding.  If  such  an  idea 
did  in  fact  influence  them,  it  has  at  any  rate  in  some  small 
degree  been  justified  by  a  section  in  the  recentl>'-passed  Panama 
Canal  Act.  Under  this  section  "  Vessels... not  more  than  five 
years  old  at  the  time  they  apply  for  registry,  wherever  built, 
which  arc  to  engage  only  in  trade  with  foreign  countries,... being 
wholly  owned  by  citizens  of  the  United  States  or  corporation 
organized  and  chartered  under  the  law  of  the  United  States,... 
the  presidents  and  managing  directors  of  which  shall  be  citizens 
of  the  United  States... may  be  registered."  The  limitations 
attached  to  the  concession,  however,  would  seem  to  bar  all  the 
vessels  of  the  Combine  whether  over  or  under  five  years  old, 
while,  in  the  opinion  of  an  American  writer,  under  present 
conditions  it  would  "  mean  bankruptcy  "  to  attempt  competition 
with  the  ships  of  other  nations. 

The  Pierpont  Morgan  group  at  any  rate  decided  on  the  coup. 
Most  things,  of  course,  have  their  price,  but  when  buyers  have 
apparently  made  up  their  mind  to  buy,  and  sellers  are  not 
pre-disposcd  to  sell,  the  price,  whether  it  matters  or  not,  is  likely 
to  be  high.  And  what  in  the  present  case  made  it  all  the  higher 
is,  it  is  said,  the  fact  that  the  purchase  calculations  were  based 
on  "  boom "  figures  ;  for  ship[)ing  had  been  very  prosperous. 
Even  on  this  basis  some  of  the  lines  are  understood  to  have  held 
out  for  fancy  prices,  and  these  had  to  be  paid.  The  result  is 
that  the  Combine  was  heavily  over-capitalised  from  the  start, 
and  financially,  like  the  Manchester  Canal,  is  a  grievous  dis- 
appointment. In  other  important  respects,  however,  the  Man- 
chester Canal  is  a  great  success,  and  the  Combine,  for  all  we 
know,  may  similarly  have  fulfilled  designs  not  obvious  on  the 
surface.  The  purchasing  group  did  not  buy  up  any  Continental 
lines,  but  secured  their  adhesion  or  co-operation  by  a  working 
agreement  with  pecuniary  guarantees.  This  agreement  has,  how- 
ever, recently  been  terminated,  "changed  conditions  not  warrant- 
ing its  continuance."  As  regards  the  intentions  of  the  Combine, 
it  is  stated  that  the  total  fleet  in  its  control  will  eventually  consist 
of  137  vessels  of  together  1,280,410  tons — presumably  gross. 
The  present  capital  in  shares  and  bonds — an  American  paper, 


THE   ATLANTIC   "COMBINE"  6i 

correctly  or  otherwise,  attributes  75  per  cent,  of  it  to  American 
proprietors — is  apparently  about  ;^34,ooo,ooo,  possibly  more, 
though  how  much  of  this  should  be  written  off  to  material 
depreciation  is  another  matter.  There  is  an  exceedingly  heavy 
cash  depreciation  on  the  deferred  and  preferred  shares,  and 
even  the  gold  bonds  are  quoted  at  a  heavy  discount. 

Whether  the  Trust  fully  understood  the  position  created  by 
the  stringent  laws  of  British  registry  or  not,  it  would  certainly 
seem  that  by  bringing  all  these  vessels  into  an  ownership 
predominantly  foreign,  a  serious  risk  was  incurred  of  the 
cancellation  of  their  British  registry.  And  if  this  event  had 
occurred,  away  would  have  gone  the  British  mail  subsidies  ;  or 
so  at  least  may  be  supposed.  On  the  other  hand,  to  have  all 
these  great  and  speedy  vessels  removed  from  the  British  list 
would  have  been  a  serious  thing  for  us,  let  alone  the  fact  that 
certain  of  them  were  reckoned  in  for  naval  or  military  uses  in 
case  of  need.  On  both  sides,  therefore,  it  was  a  case  for 
compromise,  and  an  agreement  was  come  to  accordingly,  on  the 
one  side  being  the  Board  of  Trade  and  the  Admiralty,  on  the 
other  the  International  Mercantile  Marine  Company  and  the 
several  companies  composing  it ;  the  agreement  to  run  for  a 
term  of  20  years  from  1902.  It  provides  that — on  the  condition 
that  the  vessels  actually  taken  over,  as  well  as  half  of  any  future 
additions  to  the  fleet,  are  kept  under  the  British  flag  ;  and  that 
the  original  companies  are  kept  alive,  with  a  majority  of  the 
directors  British  subjects ;  and  that  the  certain  vessels  just 
referred  to  are  still  kept  at  the  Government  disposal  in  case  of 
need — the  British  Government  will  for  its  part  continue  to  the 
vessels  their  British  privileges.  From  which  it  seems  to  follow, 
conversely,  that  if  the  limitations  of  the  Panama  Canal  Act 
should  be  some  day  deleted,  and  it  should  suit  the  purposes  of 
the  Combine  to  break  or  terminate  the  agreement,  if  such  course 
be  in  fact  open  to  them, — or  if,  possibly,  some  sudden  national 
necessity  for  ship-tonnage  should  arise  on  the  part  of  the  United 
States — the  result  may  be  that  the  vessels  will  be  struck  off  the 
British  register.  Meanwhile  they  remain  on  the  British  register 
and  apparently  also  constitute  an  American  enterprise  registered 
as  a  company  in  the  State  of  New  Jersey. 


62  SHIPPING   RINGS: 

SiiiPi'iNG  Rings:   the  Deferred  Rebate  System 

The  "  Freight  Wars "  of  which  \vc  read  from  time  to  time 
are  mainly  clue  to  the  existence  of  Shipping  Rings.  Certain 
ship-owners  lay  themselves  out  to  cater  for  the  ocean  transport 
needs  of  a  particular  port  or  group  of  ports.  They  build 
steamers  specially  adapted  to  the  needs,  they  run  them  to  dates, 
full  or  empty,  and  in  order  to  enhance  their  usefulness  to  the 
traders  they  ring  the  changes  on  the  ports  of  loading.  The  result 
is  that  they  build  up  a  valuable  trade.  Perhaps  before  this  has 
been  effected  the  line  has  a  struggle  with  rivals  in  the  trade, 
of  which  the  outcome  may  be  a  working  union  between  them. 
They  agree  on  a  tariff  of  freights,  and  all  goes  well.  Then 
perhaps  a  splendid  harvest  occurs  or  a  "  boom  "  in  the  special 
trade,  with  much  cargo  to  be  transported.  The  owner  of  a 
fleet  of  tramps  has  perhaps  long  cast  envious  eyes  on  what  to 
him  has  been  a  Naboth's  Vineyard,  and  he  determines  to  cut 
in.  He  may  have  put  aside  a  very  large  fighting  fund  for  the 
very  purpose.  If  he  can  hold  out  long  enough  at  his  low  fighting 
rates,  with  which  the  established  lines  will  have  to  contend, 
they  will  have  to  end  by  admitting  him  to  the  privileged  trade, 
as  one  of  the  Ring.  Afterwards  they  can  all  put  up  their  rates 
again  and  get  back  what  they  have  lost.  But  such  unrestrained 
competition  is  most  disconcerting  to  the  traders,  who  are  apt 
to  find  their  mercantile  arrangements  completely  upset  by  rates 
high  at  one  time,  low  at  another.  They  complain,  accordingly, 
to  the  owners  of  the  Ring.  The  regular  lines  retort,  naturally 
enough,  that  the  merchants  have  only  themselves  to  thank  :  if 
they  did  not  give  support  to  the  first  cheap  competitor  that  came 
along,  it  would  not  happen.  Eventually  a  bargain  is  struck, 
the  outcome  of  a  "  Conference."  The  shipowners  guarantee 
certain  privileges  at  agreed  rates  of  freight ;  the  merchants  sign 
or  declare  their  intention  to  act  under  an  agreement  to  use  only 
the  steamers  of  the  regular  lines.  Such  agreements  usually 
apply,  however,  to  shipments  of  ordinary  mercantile  goods,  the 
merchants  remaining  free  to  charter  vessels  for  full  cargoes, 
without  breach  of  agreement.  But  the  regular  lines,  unwilling 
to  take  too  much  on  trust,  get  a  good  hold  of  the  traders  by 


THE    DEFERRED    REBATE   SYSTEM  63 

what  is  known  as  the  "  Rebate  System."  Under  this  system, 
if  a  merchant  sticks  with  absolute  faithfulness  to  his  side  of  the 
bargain,  the  shipowners  will,  at  the  end  of  every  six  months, 
grant  him  a  rebate  of  (ordinarily)  10  per  cent,  on  the  freight 
he  has  paid  during  that  time  ;  this  10  per  cent,  not,  however, 
to  be  actually  paid  over  until  the  end  of  a  second  period  of  six 
months,  in  which  the  merchant  must  have  remained  just  as 
strictly  faithful  to  his  bargain. 

Now  this  agreement  of  course  does  not  necessarily  stop 
competition  on  the  part  of  the  jealous  owner  of  a  fleet  of  tramps. 
He  may  take  his  chance  and  win,  as  above  described,  or  he  may 
be  beaten.  If  beaten,  he  may  possibly  put  on  a  line  of  steamers 
to  run,  say,  from  New  York  to  the  Naboth's  Vineyard.  The 
Conference  Agreement  does  not  apply  to  such  a  voyage,  and 
the  result  may  be  that  the  local  traders  will  get  their  goods 
from  America  at  lower  rates  of  freight  than  from  Great  Britain 
to  the  prejudice  of  British  manufacturers  and  with  the  result 
of  commercial  confusion  generally.  For  a  long  time  the  South 
African  merchants — or,  rather,  certain  of  them — had  been  very 
bitter  on  the  whole  subject,  declaring  that  the  Rebate  System 
was  being  tyrannously  worked  to  the  injury  of  South  Africa. 
A  conference  of  traders,  called  by  Lord  Milner,  was  held  at 
Johannesburg  in  1904  at  which  the  writer  was  present,  at  the 
instance  of  the  Colonial  Office.  Nothing  came  of  it.  The 
indignation  of  a  section  of  the  traders,  however,  gathered  force, 
and  eventually  a  Royal  Commission  was  appointed  to  consider 
and  report  on  the  subject  generally.  Practically,  nothing  came 
of  this  either.  The  position  at  that  time  is  probably  fairly 
well  shown  by  the  following  excerpt  from  the  writer's  evidence 
prepared  for  the  Royal  Commission  already  mentioned  : 

"  At  the   Johannesburg   Conference   the   complaints  of  the 
traders  were  : 

(i)  That  the  rates  of  freight  were  inequitable  and 
oppressive. 

(2)  That  the  shipowners  unfairly  granted  secret  con- 
cessions to  certain  large  companies  or  firms,  to  the  prejudice 
of  other  traders. 

(3)  That   the   shipowners   carried    goods  from  America 


64  SHIPPING   RINGS: 

to  South  Africa  at  lower  rates  than   from  England  to  South 
Africa. 

(4)  That  the  German  Lines  belonging  to  the  Ring  carried 
certain  goods  from  Germany  at  lower  rates  than  the  British 
Lines  in  the  Ring  would  carry  similar  goods  from  Kngland  to 
South  Africa.     And 

(5)  That  the  shipowners  had  used  their  privileged 
position  as  an  instrument  of  oppression  against  shippers  who 
had  shipped  goods  by  competing  Lines." 

These,  I  think,  were  the  grievances,  or  the  principal  of  them. 

To  my  mind,  the  most  serious  of  these  complaints  was  No.  3 
— that  of  giving  an  unfair  preference  to  American  shippers. 
The  complaint  was  well  founded.  It  is,  however,  necessary  to 
analyse  it,  more  especially  as  the  traders  were  professedly 
championing  the  cause  of  the  consumer,  who  was  understood 
to  be  the  principal  victim  of  the  Ring.  But  if  the  rates  charged 
on  the  goods  from  England  were  on  their  own  merits  reasonable, 
it  is  not  evident  in  what  way  the  consumers,  as  such,  were 
injured  by  a  system  which  enabled  them  to  buy  American 
manufactures  cheaper  than  English.  That  the  system  was 
highly  prejudicial  to  British  manufacturers  is  evident  enough  : 
but  this  did  not  hurt  the  South  African  consumers,  as  such.  It 
was  however  a  serious  charge  from  an  Imperial  point  of  view, 
and  the  shipowners  were  only  able  to  plead  in  their  own  defence 
{a)  that  it  was  forced  on  them  by  a  freight  war ;  {b)  that  they 
themselves  were  heavy  losers  by  it ;  and  (c)  that  it  was  only 
a  temporary  occurrence.  In  my  opinion  this  explanation  was 
correct  and  bona  fide ;  but  this  did  not  get  rid  of  the  fact 
complained  of. 

Complaint  No.  4  was  somewhat  of  the  same  nature,  viz.  that 
German  goods  were  brought  in  German  steamers  belonging  to 
the  Ring,  at  much  lower  rates  than  similar  English  goods  were 
brought  in  British  steamers.  Here  again,  if  the  English  rates 
were  reasonable,  the  consumers,  as  such,  would  appear  to  have 
had  no  real  grievance,  though  from  an  Imperial  point  of  view 
the  complaint  was  serious. 

The  answer  of  the  shipowners  to  this  charge  was  an  ex- 
planation that  {a)  it  was  the  outcome  of  a  peculiar  combination 


THE   DEFERRED    REBATE   SYSTEM  65 

between  the  German  railways  and  the  German  ships  ;  and  {b)  that 
the  British  shipowners,  whilst  in  sympathy  with  the  complaint, 
were  powerless  to  remedy  it.  But  so  far  as  the  Ring  is 
concerned,  it  would  seem  that  the  alliance  existing  between  the 
German  State  railways  and  the  (more  or  less  State-subsidised) 
German  lines  will  always  enable  goods  to  be  carried  from 
inland  Germany  to  the  Cape  more  cheaply  than  they  can  be 
carried  from  inland  British  cities  to  the  Cape,  Ring  or  no  Ring, 
as  there  is  no  corresponding  alliance  between  the  English  rail- 
ways and  the  English  ships. 

I  have  already  observed  that  the  South  African  consumers, 
as  such,  had  no  ground  of  complaint  against  the  Ring  for  carrying 
foreign  goods  at  lower  rates  than  British  goods,  always  provided 
that  the  rates  charged  on  the  British  goods  were  in  themselves 
reasonable.  This  brings  me  to  complaint  (i)  that  the  rates  of 
freight  generally  were  inequitable  and  oppressive,  as  to  which  I 
do  not  know  whether  the  complaint  was  well  founded  or  not. 

Then  there  was  the  further  complaint  (2)  that  some  of  the 
large  importers  were  secretly  put  on  a  favoured  footing.  The 
general  impression  I  received  was  that  probably  the  complaint 
was  well  founded. 

Finally,  complaint  (5),  that  the  shipowners  had  abused  the 
position  in  which  their  agreement  with  the  traders  placed 
them,  to  act  oppressively  towards  traders  who  had  gone  back 
on  them  and  had  supported  opposition  shipowners — owners  not 
in  the  Ring.  I  believe,  myself,  from  what  1  heard  in  England 
and  in  South  Africa  that  the  Ring  did  in  fact  punish  backsliders 
with  great  severity,  with  the  result  of  a  very  bitter  feeling  on 
the  part  of  shippers  and  consignees,  some  of  which  latter  were 
made  to  suffer  severely,  being  themselves  innocent  and  ignorant 
of  any  offence  on  the  part  of  the  shippers  employed  by  them. 

An  impartial  review  of  the  facts  makes  it  abundantly  clear 
that  the  disadvantages  of  the  Ring  or  "  Conference  "  system,  as 
well  as  its  advantages,  are  very  notable.  But  whereas  the 
advantages  mainly  accrue  to  the  South  African  traders  and  to 
the  shipowners  in  the  Ring,  the  disadvantages  may  attach  to 
those  British  manufacturers  whose  goods  have  to  pay  a  higher 
freight  than  those  of  their  American  competitors.     If  it  be  true 

o.  5 


66  SHIPPING    RINGS: 

that  the  shipowners  sometimes  charge  unduly  high  rates,  to  the 
disadvantage  of  the  consumers,  the  consumers  themselves,  or  their 
allies  the  traders,  are  parties  to  the  arrangement  which  makes  this 
possible,  wiiile  the  manufacturers  arc  overlooked  in  it  altogether. 
But  if  the  system  is  objectionable,  who  are  they  who  should 
be  blamed  for  it  ?  Clearly,  the  traders  themselves.  They  lend 
themselves  to  it  solely  for  the  advantages  which  they  expect 
to  get,  and  ordinarily  do  get,  by  it.  These  advantages  are  : 
(i)     Settled  or  stable  rates  of  freight. 

(2)  Regular  sailings  to  and  from  South  Africa. 

(3)  Alternative  ports  of  shipment  and  of  discharge. 

(4)  Steamers  of  high  class  and  speed. 

(5)  Disclaimer  of  shipowners'  right  to  trade. 

These  advantages,  they  declare,  are  necessary  for  their  trade. 
But  for  shipowners  to  provide  costly  ships,  which  are  to  sail 
whether  full  or  empty,  and  to  call  at  a  variety  of  ports  in  fixed 
order  and  at  regular  intervals,  means  great  outlay  and  great 
working  expense.  To  undertake  such  responsibilities  as  these, 
only  to  find  that  the  traders  were  giving  preference  to  the  first 
ship  which  would  offer  half-a-crown  lower  freight,  would  be  in 
the  highest  degree  improvident.  Therefore  the  shipowners  make 
a  bargain  with  the  traders.     The  result  is  the  Rebate  System. 

Now  there  is  nothing  new  about  this  s}'stem.  It  is  under- 
stood and  practised  all  the  world  over.  If  the  South  African 
traders  are  opposed  to  it,  the  remedy  is  in  their  own  hands  ; 
they  can  say  they  will  have  no  more  of  it^  But  instead  of  doing 
this  they  load  the  shipowners  with  complaints,  and  cry  to  the 
Government  to  help  them  out  of  a  difficulty  which  they  have 
created  for  themselves  and  which  they  themselves  are  in  a 
position  to  solve  effectually.  Let  the  traders  agree  amongst 
themselves  that  they  will  have  no  more  Rings.  They  would 
then  all  of  them  be  on  the  same  footing,  whether  a  footing  of 
the  present  advantages  or  not.  As  it  is,  the  traders  want 
personally  the  advantages  which  a  Ring  gives  them,  and  want 
the    Government    to    protect    them    against   the    disadvantages 

'  All  this,  as  already  stated,  is  by  way  of  quotation  from  my  evidence.  As 
presently  to  be  explained,,  so  far  as  South  Africa  is  concerned,  the  system  has  now  — 
either  permanently  or  tentattvely — been  superseded. 


THE    DEFERRED   REBATE    SYSTEM  67 

inevitable  to  the  system,  a  system  which  they  must  well  know  to 
be  inevitable  if  the  shipowners  are  not  to  be  made  fools  of.  If 
they  all  agreed,  they  could  render  the  system  impossible. 

The  shipowners  are  greatly  blamed  by  the  traders,  and 
indeed  a  course  of  action  which  takes  no  heed  of  the  rights 
and  interests  of  British  manufacturers  is  rightly  to  be  blamed. 
But  are  the  shipowners  more  to  blame  than  the  traders  ?  The 
traders  know,  as  well  as  the  shipowners,  what  are  likely  some 
time  or  another  to  be  the  consequences  of  a  Ring.  Complaint 
No.  3 — the  American  competition — may  be  further  referred  to. 
The  grievance  is  that  goods  are  carried  from  America  to  South 
Africa  at,  let  us  say  for  illustration,  20/-  a  ton  less  than  from 
the  United  Kingdom.  But  what  is  the  value  of  the  ton  so 
carried  ?  It  varies,  of  course,  but  let  us,  for  illustration,  call  it 
;^20.  Adopting  these  figures  as  a  convenient  basis,  it  follows 
that  the  South  African  consumer  will  be  able  to  buy  certain 
American  goods  at  5  "/o  less  cost  than  similar  British  goods. 
This  is  very  annoying  to  the  British  manufacturer,  no  doubt, 
but  he  may  quite  possibly  have  to  face  a  similar  result  owing 
to  the  ability  of  a  foreign  rival  to  manufacture  at  5  "/o  lower 
cost,  or  to  the  willingness  of  such  rival  to  accept  5  "/o  less  profit ; 
or  to  a  foreign  rail-and-ship  combination  which  carried  the 
goods  at  5  7o  less  cost  than  in  the  case  of  goods  from  the 
United  Kingdom.  The  lower  freight  charged  to  the  American 
manufacturer,  we  are  told,  is  driving  British  trade  out  of  the 
colony.  Is  it,  then,  driven  out  by  the  other  instances  referred 
to  .-*  Surely  not.  And  there  is  this  fact  to  be  borne  in  mind  ; 
a  large  part,  perhaps  the  larger  part,  of  this  favoured  American 
trade  is  in  goods  which  are  not  shipped  from  England  at  all. 
Others  are  goods  which,  owing  to  peculiarities  of  design  or 
make,  are  largely  preferred  by  colonial  users.  All  such  goods 
must  be  struck  out  of  the  wholesale  allegation  of  grievous  injury 
to  British  manufacturers.  The  remainder  calls  for  analysis  and 
classification  into  ton  value  in  order  to  arrive  at  a  conclusion 
as  to  the  real  prejudice  to  our  manufacturers.  Say  that  the 
value  of  a  ton  of  British  goods  is  i^20,  which  is  also  the  value 
of  a  ton  of  similar  American  goods ;  and  that  the  American 
freight   is  20/-,  that  is,  5  °/o.  lower,  on  the  ^20.     To   meet  an 

5-2 


68  SHIPPING    RINGS 

emergency-competition  arising  out  of  a  temporary  freight  war, 
what  is  there  to  prevent  the  British  manufacturer  from  deducting 
from  his  invoice  price  an  additional  or  special  5  "/o  discount  so 
as  to  restore  the  equal  balance  ? 

Quite  recently,  the  Union  Castle  Line,  one  of  the  most 
prominent  of  the  South  African  Conference  Lines,  has  come 
to  terms  with  the  South  African  Government.  The  line  has 
long  held  the  mail  contract,  under  subsidy,  and  this  fact,  together 
with  the  offer  of  certain  advantages  as  regards  Government 
freights,  was  an  important  element  in  the  negotiations.  The 
position  at  present  is  that  the  line  has  agreed  to  abandon  the 
Rebate  System,  whilst  the  merchants  are  to  continue  to  support 
the  line,  as  well  as  the  other  lines  which  have  agreed  to  try  the 
plan.  That  this  non-penalty  agreement  is  not  entirely  satisfactory 
recent  experiences  have  made  obvious. 

"Liners" 

The  term  "liner"  is  somewhat  vague.  Any  vessel  running 
on  a  fixed  route  may  be  regarded,  in  a  sense,  as  a  liner,  even 
the  small  short-voyage  or  "  omnibus  "  steamers  running  regularly 
backwards  and  forwards,  which  are  sometimes  said  to  be  able  to 
find  their  way  by  themselves.  But  no  one  calls  these  "  liners  "  : 
the  term  rather  implies  an  ocean  voyage.  The  liners  are  essenti- 
ally the  great  mail  and  passenger  steamers.  But  there  are  many 
vessels  running  on  a  fixed  line  or  route  which  carry  no  mails 
and  which  may  or  may  not  carry  passengers.  Some  of  the  great 
mail  lines  run  a  certain  number  of  vessels  which,  of  less  speed 
than  their  mail-ships,  lay  themselves  out  none  the  less  for 
passengers.  The  company  distinguishes  them  from  its  mail 
steamers  on  the  one  hand  and  from  any  purely  cargo  vessels  it 
may  possess  on  the  other,  by  the  term  "  intermediate  steamers." 
Then  there  are  the  great  cargo  lines,  essentially  cargo  vessels, 
some  of  which  may,  however,  occasionally  carry  a  limited  number 
of  passengers.  In  mercantile  circles  these  steamers  are  often 
known  as  "  regular  traders"  or  "cargo  liners." 

While  the  Suez  Canal  is,  of  course,  a  very  short  cut  to  the 


"  LINERS  "  69 

East,  the  saving  of  distance  which  it  effects  between  Britain  and 
Australasia  is  not  important,  and  some  lines  of  steamers  go  out 
regularly  via  the  Cape  and  return  by  way  of  the  Horn.  This,  of 
course,  is  to  save  the  canal  dues.  They  mostly  call  at  the  Cape 
on  the  way  out  and  at  Rio  on  the  way  home.  The  cargo 
liners  mostly  call  at  a  variety  of  ports,  at  each  of  which  they 
have  an  agent  and  at  some  a  branch  office.  A  well-managed 
local  office  at  an  important  oversea  or  terminal  port  is  in 
these  days  almost  as  necessary  a  part  of  a  steam  line's  business 
as  is  a  branch  or  agency  for  a  bank.  And  where  several 
lines  run  regularly  to  the  same  port,  the  competition  for 
business  is  very  keen.  They  may,  too,  have  a  service  of  small 
coastal  steamers  working  in  conjunction  as  feeders,  calling 
in  at  small  ports  and  picking  up  or  discharging  cargo  here 
and  there.  Here  the  "through"  bill  of  lading  comes  into 
use,  though  indeed  it  is  now  of  very  wide  employment — as,  for 
example,  in  the  case  of  cargo  shipped  from  a  Pacific  port,  with 
transit  across  the  "  waist  of  the  world  "  at  Panama.  Two  steam 
lines  and  the  railway  will  be  employed,  but  a  single  set  of  bills 
of  lading  is  made  out,  in  which  the  name  only  of  the  starting 
steamer  is  mentioned,  with  provision  for  transhipment  by  a 
steamer  of  the  so-and-so  line.  A  through  rate  of  freight  is 
charged,  and  the  carriers  adjust  this  amongst  themselves. 
Possibly,  indeed,  in  the  case  of  home-coming  goods,  similar 
provision  may  be  made  for  carrying  the  goods  on  from  England 
to  a  Continental  port.  Or  tea  may  be  shipped  from  India  or 
China  to  London  on  a  through  bill  of  lading  for  New  York.  The 
inter-locking  and  co-operation  of  the  increasing  number  of  lines 
is  much  extending  the  use  of  the  through  bill  of  lading  system. 

The  liners  and  cargo  liners  always  load,  as  it  is  said,  "  on  the 
berth  " ;  that  is,  laying  themselves  out  to  carry  anybody's  cargo 
to  any  port  on  their  route.  The  great  steamers  arriving  in 
London,  which  is  a  market  and  a  consuming  port,  are  laden  with 
goods  consigned  to  scores  or  possibly  hundreds  of  consignees. 
These  various  shipments  may  have  to  be  dispersed  in  different 
holds,  but  the  cargo  liners  for  the  most  part  keep  a  "stowage 
plan  "  on  board,  in  order  to  facilitate  assembling  and  sorting  to 
marks  at  destination. 


70  "TRAMPS" 

"Tramps" 

The  opening  and  successful  working  of  the  Suez  Canal,  and 
perhaps  nt)  less  or  even  more  the  creation  of  a  world-wide 
system  of  submarine  cables,  gave  a  tremendous  impetus  to  the 
owning  of  tramps. 

The  term  "tramp"  seemed  at  the  outset  to  convey  with  it 
a  sort  of  stigma  or  at  any  rate  discourtesy,  and  in  discussing 
such  vessels  with  their  owners  it  was  formerly  considered  better 
taste  to  refer  to  them  by  the  more  respectful  term  of  "  seekers." 
Any  reproach  which  may,  however,  have  originally  attached  to 
the  term  has  long  been  gloriously  lived  down.  Our  tramp 
steamers  are,  in  fact,  probably  not  much  less  well  designed,  well 
built  and  well  equipped  than  liners.  Indeed,  it  is  by  no  means 
uncommon  for  a  regular  line  which  finds  itself,  for  one  reason  or 
another,  short  of  tonnage,  to  add  one  or  more  tramps  to  the  line, 
under  time  charter.  Tramps  are,  however,  not  built  for  speed  : 
8  to  lo  knots  is  ordinarily  about  their  rate  of  travel.  For  one 
thing,  they  want  to  have  as  little  as  possible  of  their  valuable 
freight-earning  space  taken  up  with  fuel.  They  burn  as  little 
coal  as  they  can,  and  of  course  the  greater  a  vessel's  speed  the 
more  does  her  fuel  consumption  increase.  Not  being  bound  to 
particular  dates  the  tramps  can  plod  along  steadily  and  not  have 
to  burn  more  coal  to  offset  adverse  weather  influences.  The 
tramps  are  in  fact  the  ocean  waggons,  loaded  up  with  the  diverse 
produce  of  many  a  field,  destined  for  mill  or  works  or  factory, 
the  mail  coach  with  its  interested  passengers  passing  by  them 
rapidly,  while  the  cargo  liners,  awaited  by  many  impatient  con- 
signees, also  leave  them  astern.  If  grain-laden,  the  tramps  will 
probably  call  for  orders  and  simultaneously  fill  up  their  bunkers. 
Whether  they  will  then  have  to  set  their  leisurely  course  for  a 
British  or  a  Continental  port  will  depend  on  the  decision  of  the 
holders  of  the  bills  of  lading.  The  submarine  cable  is  the  back- 
bone of  the  tramp  industry. 

When,  owing  perhaps  to  a  splendid  harvest  in  some  distant 
land,  the  regular  traders  are  enjoying  great  prosperity,  the  owner 
of  a  fleet  of  tramps  may  put  his  steamers  on  to  share  in  their 
prosperity,   much,  possibly,  to  the  regular  traders'  indignation. 


"TRAMPS"  71 

The  particular  trade,  these  consider,  is  their  own  preserve,  and  they 
want  no  poaching.  On  the  other  hand,  the  superior  organisation 
of  the  "regular  traders",  and  possibly  a  temporary  surplus  of 
tonnage,  not  infrequently  enables  them  to  put  on  a  vessel  to 
load  up  with  a  full  or  part  cargo  which  otherwise  would  have  been 
carried  by  a  tramp.  Tramp-owners,  as  well  as  the  shipbrokers, 
complain,  indeed,  that  their  business  is  more  and  more  feeling 
the  effects  of  just  such  competition.  But  if  opportunity  or 
circumstances  should  some  day  seem  propitious,  a  fleet  of 
tramps  may  quite  possibly  itself  succeed  in  adopting,  on 
some  route  new  or  old,  the  metier  of  regular  trader,  either 
independently  or  as  the  result  of  a  successful  attempt  at  "  Ring- 
breaking  "  (p.  62). 

The  tramps  are  essentially  the  world's  harvest  waggons,  and 
their  prosperous  employment  is  largely  dependent  on  the  over- 
sea crops.  The  truth  of  this  is  rendered  very  obvious  by  the 
following  cutting  from  the  shipping  Press  : 

Tonnage  for  Argentina 

Exports  of  maize  from  the  Argentine  between  May  i  last  and  Jan.  1 1 
total  4,832,036  tons,  as  compared  with  88,607  tons  for  the  whole  of  the 
preceding  season.  This  means  that,  taking  the  average  steamer  in  the 
Plate  trade  as  5000  tons,  966  steamers  have  been  required  to  lift  the  crop, 
while  18  steamers  would  have  sufficed  for  that  of  1911-12.  This  explains  to 
a  large  extent  the  great  scarcity  of  tonnage  during  the  past  half-year,  and 
the  consequent  boom  in  freights. 

As  regards  the  cost  of  a  tramp  steamer,  it  will  of  course  vary 
according  to  circumstances,  both  of  requirement  and  of  the  price 
of  steel  and  labour,  but  for  a  round  figure  it  may  be  taken  at 
;^iO  per  gross  ton.  But  in  giving  out  an  order  to  builders,  what 
the  prospective  owners  chiefly  consider  is  the  vessel's  deadweight 
capacity,  and  on  this  capacity  the  price  will  be  based.  The 
annual  depreciation  of  shipping  tonnage  is  a  serious  factor — in 
the  case  of  tramp  tonnage  probably  at  least  five  per  cent. 


72  COASTVVISK    TRAFFIC 

Coastwise  Traffic 

Water-transport  is,  of  course,  the  cheapest  possible — at  any 
rate  till  now.  Tiie  orii^inal  outhi)-  on  tlie  raihva)s  places  them 
at  a  disadvantage  owing  to  the  heavy  burden  of  interest  entailed, 
while  the  cost  of  upkeep  and  working  is  enormous.  Then,  after 
all,  the  carriage  facilities  of  the  trains  are  greatly  limited  :  a 
train  of  as  many  as  thirty  trucks  can  move  only  some  250  tons. 
Ships,  on  the  other  hand,  have  their  cost  confined  entirely  to 
themselves,  and  their  transport  facilities  are  vast.  A  little 
steamer  of  only  1000  tons  gross  will  carry  some  1500  tons,  or 
six  train-loads  of  goods.  Therefore,  wherever  rail  and  ship  come 
into  competition  and  time  is  unimportant,  the  advantages  are  with 
the  ship.  Where  time  is,  however,  of  importance,  then  the  con- 
verse is  the  case.  Most  short-voyage  ports  are  more  or  less  a 
centre  of  competition  between  ship  and  railway.  London  notably, 
a  great  transhipping  port,  the  chief  port  of  the  country's  trade,  is 
a  vortex  of  such  competition;  while  the  fact  that  it  is  a  barge  or 
water  port,  as  distinguished  from  a  railway  port,  plays  into  the 
hands  of  the  coastal  steamers.  From  the  moment  when  London's 
ships  ceased  to  lie  at  the  merchants'  waterside  premises,  and 
conveyance  had  to  be  made  by  barge  between  ship  and  wharf, 
between  wharf  and  ship,  London  became  a  barge  or  water  port ; 
and  the  large  increase  in  water-front  premises  has  resulted  in 
a  fleet,  to-day,  of  some  11,000  barges,  many  of  them  separately 
capable  of  carrying  a  number  of  the  small  craft  of  ancient  times. 
But  many  of  these  waterside  premises  are  now  central  stores 
into  which,  by  barge,  goods  are  delivered  from  the  ships,  to  be 
consumed  in  the  metropolis,  to  be  forwarded  to  the  provinces, 
or  to  be  .sent  to  purchasers  abroad.  For  these  last,  water  trans- 
port is  of  course  inevitable.  Where,  however,  goods  have  to  be 
sent  from  the  wharves  to  provincial  purchasers,  or  from  the  ships 
to  distant  factories  or  markets,  then  comes  in  the  struggle  between 
train  and  coastal  steamer.  Mostly,  in  Continental  countries,  it 
is  between  barge  and  railway.  Our  water  transport,  as  a  great 
national  system,  is  external,  coastwise  ;  not  internal,  through  the 
fields.  What  country  in  the  world  has  anything  to  compare  with 
it .'    And  similarly,  when  goods  have  to  be  sent  from  the  provinces 


COASTWISE   TRAFFIC  73 

to  London  for  shipment  overseas.  Where  time  is  not  important 
and  the  two  goods-termini  are  London  and  a  coastal  port,  it  is 
all  in  favour  of  the  coastal  carrier.  When,  however,  an  inland 
terminus  is  in  question,  there  is  active  competition.  Broadly 
stated,  the  railways  are,  of  course,  all  against  the  ships  ;  but  when 
one  railway  system  has  direct  communication  with  London,  and 
another  has  only  communication  with  the  coast,  the  latter  is  not 
going  to  allow  any  sentiment  of  loyalty  to  the  railway  brother- 
hood to  prevent  it  from  co-operating  with  the  coastal  steamers,  to 
the  disadvantage  of  a  rival  London  system.  The  local  railway 
line  and  the  coastal  traffickers  support  one  another,  and  the 
through-rails  to  London  have  to  compete  with  the  combination. 
The  coastal  services  have  their  agents  at  inland  cities  and  grant 
through-rates  between  London,  by  rail  and  sea,  and  the  inland 
terminus  ;  and  so  great  is  the  carrying  capacity  of  the  up-to-date 
coastal  steamer  that  the  owners,  with  a  full  ship,  can  afford  to 
charge  rates  extraordinarily  low.  All  that  is  necessary,  however, 
in  the  steamers'  competition  with  the  through-rails  to  London  is 
to  underquote  the  latter  so  far  as  is  necessary  to  attract  the  goods. 
And,  as  many  of  the  coastal  steamers  now  carry  passengers  and 
have  therefore  to  be  built  for  speed,  the  importance  of  the  time- 
element  in  this  competition  is  being  steadily  reduced.  The 
extent  of  this  competition  will  be  realised  when  it  is  mentioned 
that  in  the  case,  for  illustration,  of  Cardiff,  there  are  no  less  than 
seven  lines  of  coastal  steamers  making  it  a  port  of  frequent  call, 
steamers  in  connexion  with  ports  all  round  the  coast ;  and  these 
cargo  lines,  in  touch  with  inland  cities,  collect  and  deliver  in 
railway  manner.  But  the  introduction  of  the  motor-lorry  is  now 
beginning  to  destroy  the  harmony  of  working  hitherto  subsisting 
between  the  local  railways  and  the  coastal  steamers,  and  to 
increase  the  facilities  of  the  latter.  The  coastal  steamers  are,  in 
fact,  always  pressing  more  and  more  heavily  on  the  railways, 
competing  with  them  as  keenly  for  the  summer  passenger  as  for 
goods.  The  railway  companies  have  got  to  meet  this  competition 
somehow,  and  the  result  is  occasional  anomalies  in  railway  rates, 
which  are  publicly  held  up  as  evidence  of  the  (supposed)  in- 
competence of  the  railways. 

We  may  mention  here  a  fact  which  tells  in  favour  of  the 


74  COASTWISE   TRAFFIC 

coastal  carriers  from  London,  and  one  which  is  a  chronic  grievance 
with  the  shipowners.  When  barges  first  came  into  use  in  London's 
port,  the  ships  discharged  overside  into  the  barges,  or  perhaps  at 
low  water  into  carts  alongside.  Delivery  was  given  straight 
into  the  vehicle  of  the  consignees.  When  the  docks  were  built, 
the  barges  were  by  Act  of  Parliament  made  free  to  come  and 
go  in  the  docks,  without  charge.  This  provision  is  well  known 
as  the  "  free  water  clause."  The  dock  companies  lived  to  see 
80  per  cent,  of  the  goods  imported  into  the  docks  carried  away 
by  the  barges,  without  being  able  to  charge  a  penny  on  the 
barges.  It  was  mainly  this  loss  of  goods,  indeed,  which  reduced 
the  dock  companies  to  impecuniosity.  But  if  the  "  free  water 
clause  "  proved  disastrous  to  the  docks,  the  "Custom  of  the  Port", 
which  goes  hand  in  hand  with  it,  is  little  less  obnoxious  to  the 
shipowners.  For  when  the  ships  grew  bigger  and  bigger  and 
their  cargoes  got  more  and  more  mixed,  the  shipowners  could 
no  longer  sort  out  the  goods  on  deck  and  deliver  them  straight 
into  the  waiting  barges.  They  had  to  land  them  for  sorting  in 
the  dock  shed,  truck  them  back  across  the  quay,  and  then  put 
them  on  board  the  barges.  It  was  the  ancient  custom  of  the 
port  that  the  ships  should  deliver  into  the  barges  as  part  of  their 
contract,  and  if  they  chose  for  their  own  convenience  to  land 
and  sort  the  goods  and  then  deliver  them,  this  was  their  own  affair. 
As  a  matter  of  fact  the  process  ordinarily,  on  mixed  cargoes,  costs 
the  shipowners  about  is.  6d.  or  2s.  a  ton,  and  they  greatly  resent 
it.  At  other  ports  their  responsibility  ceases  when  the  goods 
are  out  of  the  ship's  tackle,  and  the  sorting  and  delivery  has  to 
be  at  the  expense  of  the  consignees.  And  the  shipowners  cannot 
always  protect  themselves  by  charging  a  higher  freight  for  a 
voyage  to  London,  for  the  destination  of  the  ship  may  possibly 
depend  on  orders  at  a  port  of  call.  If  the  orders  be  for  London, 
this  may  be  unfortunate  for  the  owners.  But  the  fact  that  the 
barges  are  entitled  to  free  delivery,  while  delivery  to  a  railway 
truck  will  have  to  be  paid  for  by  the  owners  of  the  goods,  would 
certainly  seem  to  be  somewhat  in  favour  of  the  coastal  carriers. 
The  following,  recently  printed  in  the  Shipping  Gazette,  draws  an 
interesting  comparison  between  Liverpool  and  London  in  this 
connexion  :  "While something  has  been  done  in  Liverpool  during 


THE   SAILING   SHIP  75 

the  past  eight  years  to  cheapen  through  traffics  to  and  from 
interior  points,  nothing  has  been  done  for  the  transit  trade.  It 
has  to  pay  the  full  cost  of  transport  from  steamer  to  steamer, 
which  runs  from,  say,  3^-.  to  6s.  per  ton,  according  to  the  cargo, 
whereas  at  London  the  total  expense  of  transit  is  the  lighterage 
of  IS.  to  IS.  ^d.  per  ton.  The  organisation  in  recent  years  of 
direct  steamers  between  ports  at  home  and  abroad  with  oversea 
points  has  robbed  Liverpool  of  much  of  the  transit  trade  which 
she  formerly  enjoyed,  and  the  competition  of  other  ports  at  home 
is  taking  a  good  deal  of  the  rest." 

The  Sailing  Ship 

A  book  on  ocean  commerce  can  hardly  be  written  without 
any  reference  at  all  to  sailing  vessels  ;  but,  more's  the  pity,  the 
sphere  of  their  once  indispensable  usefulness  continues  to  be 
steadily  whittled  away.  They  are,  of  course,  still  built,  occasion- 
ally even  splendid  five-masters  of  4000  tons,  but  mainly  if  not 
entirely  for  special  trades.  An  attempt  is  now  being  made  to 
employ  the  internal  combustion  engine  as  an  auxiliary  in  case  of 
need,  but  whether  any  satisfactory  results  will  accrue  has  yet  to  be 
learnt.  Some  fine  sailing  vessels  still  sail  to  Australasia,  because 
while  the  increased  distance,  as  compared  with  the  Suez  Canal 
route,  is  not  considerable,  the  saving  of  Canal  dues  is  a  distinct 
advantage.  British  Columbia,  California  and  the  West  Coast  of 
South  America  more  particularly  for  timber,  nitrate  and  guano, 
still  find  employment,  though  steadily  diminishing,  for  the 
"  wind-jammer  ",  but  the  opening  of  the  Panama  Canal  may,  not 
impossibly,  hit  them  hard.  Meanwhile,  the  cost  of  coal  on  the 
Pacific  Coast  is  in  their  favour,  and  not  a  little  the  slow  process  of 
loading  and  discharging  by  means  of  lighters,  which  has  largely 
to  be  resorted  to  in  the  southern  harbours  on  that  coast.  Time 
with  the  sailing  ship  does  not  mean  money  in  the  same  degree 
as  with  the  steamer,  and  where  slow  loading  or  discharge  are 
necessary  incidents  the  sailing  vessel  still  gets  her  chance.  But 
size  is  still  and  always  an  important  factor,  and  one  which  leaves 
the  sailing  vessel  far  behind.  The  ability  to  obtain  a  full  load  by 
calling  at  several  ports  encourages  the  building  of  large  steam 


76  THE   SAILING   SHIP 

ships,  but  the  trades  to  which  the  saih'ng  vessels  have  become 
h'mited  favour  very  little  option  of  this  kind.     Where  an  owner 
lays  himself  out  for  a  regular  trade  between  certain  termini,  he 
can  build  his  ships  to  suit  the  trade ;  but  this  is  practically  his 
limit.     It  took  many  years  before  the  shipowning  and  mercantile 
community  gained  confidence  in  the  steamer  :  the  risk  of  break- 
down in  the  engine-room  long  hung  over  them.    When,  however, 
with  the  evolution  of  the  marine  engine  these  fears  passed  away, 
the  doom  of  the  sailing  ship  was  sealed.     So  long,  moreover,  as 
sailing  vessels  and  steamers  were  all  on  a  common  footing  as 
regards  size,  the  advantage  on  the  steamer  side  was  less  marked. 
But  while  with  wooden  ships  size  was  limited  by  the  nature  of 
the  material,  to  the  size  of  vessels  built  first  of  iron  and  later  of 
mild  steel  there  was  practically  no  limit.     There  was  apparently 
no  reason  why  sailing  vessels  should  not  also  be  iron-built,  but 
they  had  always  been  built  of  wood,  and  those  who  built  them 
were  accustomed  only  to  that  material  and  had  no  experience 
with  iron.     No  doubt  the  new  material  called  into  existence  a 
new  class  of  builder.    Still,  the  mere  substitution  of  iron  for  wood 
did  not,  it  is  said,  materially  affect  the  question  of  size.     It  was 
the  later  introduction  of  steel  with  its  remarkable  flexibility  which 
opened  up  the  new  possibilities  in  this  respect.     At  any  rate,  as 
we  all  know,  the  sailing  vessel  gradually  dropped  out,  though 
probably  for  a  conjunction  or  variety  of  reasons.    Here  and  there 
owners,  more  especially  foreign,  continue  the  use  of  large  steel 
sailing  vessels,  principally  for  the  Pacific  trade  ;  the  Americans 
build  a  certain  number  of  many-masted  schooner-rigged  sailing 
ships  of  great  size — and,  it  may  be  added,  of  splendid  appearance 
with  all  their  canvas  set — and  we  ourselves  have  still  some  sailing 
.ships  at  sea.     One  by  one,  however,  they  are  sold  to  foreigners, 
mainly,  perhaps,  for  the  carriage  of  timber  and  rough  stuff,  and 
a  new  steam  ship  takes  their  place.    Foreigners  are,  in  fact,  the 
principal    sailing-ship   owners.     The  largest  of  such  owners  in 
the  world  is  the  well-known   firm  of  A.  D.   Bordes   &   Co.,  of 
Dunkirk,  who  are  down  as  the  proprietors  of  42   ships   of  an 
aggregate  gross  of  105,000  tons. 


CHARTERPARTY  -jy 

Charterparty 

Charterparty — "  Charta  partita^  a  legal  paper  or  instrument 
'  divided ',  i.e.  written  in  duplicate  so  that  each  party  retains 
half."  A  charterparty  is  a  written  or  printed  agreement  for  the 
hire  of  a  ship,  or  possibly  of  part  of  a  ship,  for  a  given  voyage, 
undertaking  or  period  of  time.  The  shipowners  and  the 
charterers  each  have  a  copy  signed  by  the  other.  As  dis- 
tinguished from  the  bill  of  lading  it  is  a  contract  of  hiring,  the  bill 
of  lading  being  a  contract  of  carriage.  It  is  as  though,  in  the 
first  case,  you  hired  the  carrier's  waggon,  with  his  horse  and  men, 
and  in  the  second  as  if  you  paid  him  to  take  charge  of  your 
goods  and  deliver  them  at  the  agreed  destination. 

Ordinarily,  in  the  case  of  a  charter,  the  shipowner  provides 
the  ship,  officers,  crew  and  bunker  fuel,  and  pays  the  working 
expenses  of  the  ship.  The  contract  holds  good  against  him 
except  in  the  case  of  certain  eventualities,  which  are  set  forth  in 
the  charterparty.  Charterparties  vary  in  form  according  to 
trade,  cargo  and  circumstances.  The  Uniform  River  Plate 
Charterparty  of  1904 — a  grain  charterparty — here  printed,  will 
serve,  as  well  probably  as  another,  as  an  illustration \ 

The  eventualities  for  which  the  shipowners  are  not  to  be  held 
responsible  are  set  forth  in  par.  38.  Against  these  eventualities 
or  exceptions  it  rests  with  the  charterer,  so  far  as  practicable, 
to  insure  himself.  Having  hired  the  ship,  it  is  open  to  him  to 
use  her  solely  to  carry  his  own  cargo,  or  if  his  cargo  should  be 
insufficient  to  fill  the  ship,  to  carry  for  other  shippers  in  addition. 
Or  he  may  hire  the  ship  purely  as  a  speculative  enterpri.se,  in  the 
expectation  of  being  able  to  sub-charter  her  at  a  profit  or  to  fill 
her  with  other  people's  cargoes  at  rates  of  freight  of  which  the 
outcome  will  be  an  aggregate  total  in  excess  of  what  he  has  to 
pay  for  the  hire  of  the  ship.  The  shippers,  whether  of  the 
charterer's  own  goods  or  third  parties,  will  presumably  obtain 
bills  of  lading  in  the  ordinary  course. 

It  will  be  noticed  (clause  3)  that  the  vessel  is,  in  effect, 
warranted  seaworthy  ;  that  is,  seaworthy  in  herself  and  fitted 
also  for  the  safe  carriage  of  the  goods  to  be  put  into  her.     She  is  to 

'  See  pocket  in  cover. 


78  CHARTERPARTY 

proceed  to  her  loadiiiy^  port  and  take  in  cargo.  Having  loaded, 
she  is  to  proceed  to  St  Vincent  or  one  of  other  specially  named 
ports,  to  receive  orders  as  to  her  port  of  discharge,  which  is 
declared  to  be  any  port  between  Bordeaux  and  Hamburg,  both 
included,  or  to  a  United  Kingdom  port.  The  policies  on  the 
cargo  will  be  so  worded  as  to  provide  for  this,  and  may  provide 
also  for  a  return  or  refund  of  a  part  of  the  insurance  premium  in 
the  event  of  the  adoption  of  a  port  of  discharge  in  the  United 
Kingdom.  Clauses  6  to  1 5  fix  the  rate  of  freight  to  be  paid  by 
the  charterers  to  the  owners.  If  the  charterers  ship  other  people's 
cargo  it  is  free  to  them  to  charge,  if  they  can  obtain  it,  a  higher 
rate,  and  the  difference  between  the  two  rates  will  be  their  own 
profit.  These  clauses  also  provide  for  shipment  at  alternative 
ports  at  or  near  the  River  Plate,  with  rates  of  freight  according. 
The  hire-money  need,  however,  have  no  relation  at  all  to  freight, 
and  of  course  in  the  case  of  Government  charters  it  could  not  do 
so.  The  contract  may  be  for  a  lump  sum  or  at  a  payment  of  so 
much  per  month.  If,  however  (clause  16),  light  freight — i.e.,  light 
cargo  ;  freight,  like  salvage,  is  a  word  of  alternative  meanings — 
be  shipped,  charterers  are  to  be  liable  on  the  basis  of  wheat  or 
maize,  up  to  the  vessel's  capacity  to  carry  such.  Clause  17  gives 
further  options  as  regards  alternative  ports  of  shipment,  with  the 
rates.  If  the  master  requires  cash  for  the  ship's  expenses,  the 
charterers  are  to  advance  it  (clause  18)  up  to  one-third  of  the 
total :  the  balance  to  be  paid  on  right  delivery.  Clauses  19  and  20 
provide  for  shifting  from  one  to  another  loading  shoot.  Clause  2 1 
relates  to  fixing  of  port  for  commencement  of  loading,  on  vessel 
reporting  herself  ready.  Clauses  22  to  30  make  provision  for 
shipment  and  stowage.  Lay  days  are  the  days  allowed  to  the 
charterers  in  which  to  load.  If  these  days  be  exceeded,  then 
charterers  must  pay  fourpence  per  ton  of  the  ship's  gross  registered 
tonnage  per  day  (if,  i.e.,  the  ship  should  be  6000  tons  gross 
i^icxD  per  day),  for  "demurrage."  On  the  other  hand,  if  the 
charterers,  by  exercising  despatch,  shall  not  use  all  the  lay  days, 
the  ship  shall  pay  charterers  ;^io  per  day  saved,  as  "despatch 
money."  Clause  31  deals  with  the  bill  of  lading  freight.  The 
charterers  may  decide  what  the  rate  shall  be,  but  if  it  shall 
amount  to  less  than  the  hire-freight  the  charterers  must  pay  the 


CHARTERPARTY  79 

difference  before  the  ship  sails.  If  it  shall  amount  to  more,  then 
the  master  shall  give  the  charterers  a  bill  for  the  difference,  the 
amount  to  be  paid  on  ship's  discharge,  as  detailed.  Clause  32 
provides  for  the  ship  to  "  call  for  orders  "  as  to  her  final  desti- 
nation. When  a  ship  is  reported  as  having  arrived  at,  say, 
St  Vincent  "F/O  ",  it  means  that  she  has  arrived  for  orders.  The 
cargo  may  have  been  sold  from  one  buyer  to  another  between 
loading  and  arrival  at  port  of  call,  but  the  buyer  who  is  then  the 
owner  of  the  goods  must  cause  a  cable  to  be  sent  to  the  master  at 
port  of  call,  instructing  him  where  to  proceed  for  discharge.  As 
already  mentioned,  this  may  be  any  port  in  the  United  Kingdom  or 
a  Continental  port  within  the  limits  specified.  Some  ports  are 
more  expensive  for  discharge,  in  delays  and  charges,  than  others. 
In  an  open  charter  of  this  kind  the  owners  have  to  take  their 
chance  and  hope  for  the  best  (cf  pp.  12,  74).  If  the  ship  be 
ordered  to  a  discharging  port  which,  owing  to  its  methods,  proves 
costly  to  the  owners,  they  do  not  soon  forget  it.  But  perhaps  when 
the  ship  gets  to  her  port  of  call  the  cargo  may  still  be  offering  on 
the  market.  Clause  33  gives  the  charterers  another  opportunity. 
The  ship  may  go  on  to  Falmouth  and  get  her  orders  there.  But 
the  owners  are  not  going  to  have  her  ordered,  perhaps,  from 
Falmouth  down  to  Bordeaux  ;  if  the  charterers,  or  whoever  may 
be  then  the  owners  of  the  cargo,  cannot  determine  the  port  of 
discharge  till  the  ship  is  off  the  coast,  then  the  Continental  option 
must  be  limited  to  Havre  and  Hamburg  and  ports  between. 
Clause  34  provides  for  the  case  of  the  port  of  discharge  being 
blocked  by  ice,  and  the  next  following  clause  for  there  being 
insufficient  water  to  enable  the  ship  to  come  to  a  discharging 
berth.  Clause  36  bars  Tilbury  Docks  in  any  case.  The  charter, 
it  must  be  borne  in  mind,  is  a  compromise  between  the  interests 
of  the  two  parties.  Tilbury  might  suit  the  shipowners  well 
enough,  but  the  owners  or  purchasers  of  the  cargo  require  it  to 
be  discharged  nearer  to  the  trading  centre.  Clause  37,  dealing 
with  discharge,  is  the  converse  of  clause  23,  which  dealt  with 
loading.  If  the  charterers  exceed  the  customary  time  in  dis- 
charging, they  have  got  to  pay  demurrage  as  in  the  other  case. 
Then  come  the  important  "  Exceptions  ",  clause  38.  The  owners 
are  not  to  be  liable  for  any  losses  arising  by  Act  of  God,  Perils 


8o  CHARTERPARTY 

of  the  Seas,  capture  or  detention,  or  losses  caused  by  any  act, 
nej:jlect  or  default  of  the  ship's  officers  and  crew,  and  so  forth — 
the  usual  stipulations.  Also,  the  ship  is  given  the  right  to  call 
anywhere  and  to  earn  salvage  if  she  gets  the  chance.  That  there 
may  be  no  question  as  to  all  this,  on  the  part  of  shippers  or  con- 
signees, it  is  plainly  set  forth  in  the  bills  of  lading  themselves. 
As  a  matter  of  fact,  it  is  always  there,  with  ordinarily  a  long  list 
of  exceptions  in  addition.  The  wording  relating  to  losses  caused 
by  the  officers  and  crew  is  well  known  as  the  "  Negligence  Clause." 
In  Government  contracts  it  is  ordinarily  struck  out :  Government 
rejects  it.  In  such  event  Government  has  presumably  to  pay 
more  for  its  contract,  and  the  shipowners  then  take  out  a  special 
policy  at  2s.  6d.  per  cent.,  or  whatever  the  rate  may  be,  to  cover 
their  liability  to  the  Government  for  losses  caused  as  described. 
The  next  clause,  39,  the  Strike  Clause,  is  also  important.  If  the 
cargo  owners  should  be  unable  to  load  or  discharge  because  of 
strikes,  etc.,  the  lay  days  are  not  to  comprise  any  days  of  such 
inability.  The  risk,  no  light  one,  is  taken  by  the  ship.  But  the 
Protection  and  Indemnity  Clubs,  in  which  many  if  not  most  ships 
are  entered,  may  perhaps  include  compensation,  up  to  a  point, 
for  demurrage  thus  arising.  Clau.se  40  deals  with  the  method  of 
adjustment,  in  the  event  of  a  general  average  occurring.  Clause  41 
is  the  last  that  we  need  consider,  and  it  also  is  important.  If, 
before  the  shipment  of  cargo,  the  vessel,  by  reason  of  war,  and  of 
her  flag,  becomes  liable  to  capture,  or  if  the  loading  port  be 
blockaded,  or  the  shipment  of  grain  prohibited,  then  the  contract 
shall  be  at  an  end.  The  wording  is  perhaps  hardly  as  clear  as  it 
might  be.  If  war  or  blockade  should  occur  not  before  but  after 
shipment  of  cargo,  then  the  case  would  come  under  clause  38. 
The  ship,  under  38,  is  not  to  be  liable  for  loss  by  capture,  etc., 
but,  equally,  is  under  no  obligation,  at  any  rate,  to  run  into 
danger.  Rather,  it  is  the  master's  duty  to  take  any  such  steps 
as  may  be  reasonably  necessary  to  avoid  danger,  whether  of 
perils  of  the  seas,  capture,  or  otherwise,  to  the  property — ship 
and  cargo — committed  to  his  charge.  If  the  ship  arrived  at 
St  Vincent,  for  example,  and  learnt  that  war  had  broken  out, 
exposing  her  to  capture,  the  master  would  presumably  consider 
it  his  duty  to  cable  to  his  owners — unless,  as  is  more  probable. 


BILL   OF   LADING  8i 

he  found  a  cable  from   them  awaiting  him — asking  for  their 
instructions.     This  we  will  consider  presently  (p.  209). 

The  special  conditions  to  be  provided  for  in  different  trades 
or  voyages  call,  of  course,  for  suitable  provisions  in  the  charter- 
parties  framed  for  them,  but  probably  in  their  essential  features 
these  all  more  or  less  follow  similar  lines. 

Bill  of  Lading' 

The  bill  of  lading,  first  and  foremost — at  any  rate  in  the 
popular  view,  though  technically  it  is  looked  upon  more  especi- 
ally as  evidence  of  the  terms  of  the  contract  of  carriage — is  a 
shipmaster's  receipt  for  goods  entrusted  to  him  to  carry  in  his 
vessel.  He  undertakes  to  carry  them,  for  the  freight-considera- 
tion stated  in  the  document,  and  to  deliver  them  in  the  condition 
in  which  he  received  them — unless  prevented  by  certain  perils 
which  are  enumerated  with  great  elaboration ;  and,  in  their 
enumeration,  what  the  shipowner  aims  at  is  the  effective  dis- 
claimer of  the  liabilities  otherwise  attaching  to  him  as  a  carrier. 
If  experience  should  show,  as  occasionally  arises,  that,  after  all, 
some  peril  has  been  unfortunately  overlooked,  into  the  bill-of- 
lading  exceptions  it  goes  at  the  earliest  opportunity.  Practically, 
except  as  regards  one  risk,  to  be  referred  to  presently,  a  ship- 
owner is,  so  far  as  he  can  safeguard  himself  under  his  bill  of 
lading,  liable  for  nothing  at  all.  Before  proceeding  further  it 
may  be  well  to  consider  how  this  somewhat  remarkable  condition 
of  affairs  has  come  about. 

In  the  very  early  days,  the  shipowner  accepted — not  ^;rcepted 
— liability  for  everything  except,  in  brief,  losses  caused  by  the  Act 
of  God,  Perils  of  the  Seas  and  the  King's  Enemies.  The  risk  of 
these  the  shipper  had  to  run  himself,  or,  when  insurance  became 
general,  to  pay  underwriters  a  premium  to  run  them  for  him.  The 
various  other  losses  incidental  to  ocean  transport — breakage, 
pilferage,  damage  by  bad  stowage,  vermin,  heat  of  hold  and  so 

'  In  a  conference  on  the  Law  of  Affreightment  in  1882  one  of  the  speakers  said, 
"  The  bill  of  lading  which  was  in  ordinary  use  was  the  same  as  that  used  2000  years 
ago.  There  were  not  30  words  different  in  the  bill  of  lading  which  Cicero  pleaded 
upon  and  that  which  was  in  use  in  the  present  day."  The  statement  goes  obviously 
much  too  far,  at  any  rate  in  1914,  but  the  differences  to-day  are  probably  nearly  all  in 
the  nature  of  necessary  additions  to  the  ancient  wording,  owing  to  altered  conditions. 

o.  6 


S2  BILL   OF   LADING 

forth — must,  however,  liave  been  no  light  burden  on  shipowners. 
As  trade  and  competition  increased,  cheap  freights  appealed 
more  and  more  to  shippers.  A  shipowner  wliose  freight  was  lower 
than  that  of  his  competitors  would  naturally  get  the  preference. 
The  result  was — so,  at  any  rate,  it  seems  reasonable  to  assume — 
that  shipowners,  in  order  to  be  able  to  quote  a  low  freight,  little 
by  little  contracted  themselves  out  of  liability  for  losses  for  which 
they  had  formerly  accepted  liability.  The  merchants  could  not 
expect  to  have  it  both  ways,  and  the  outcome  was  low  freights 
which  left  shippers  to  run  their  own  risk  of  such  losses  as, 
being  preventable — theoretically  at  any  rate — by  proper  precau- 
tions, are,  in  the  eye  of  the  law,  perils  not  "of"  but  "on"  the  seas. 
The  ordinary  marine  policy  covers  only  perils  "of"  the  seas,  so 
that  for  the  most  part  the  shippers  have  now  no  remedy  against 
any  one  if  their  goods  suffer  by  what  are  often  known  as  "  ship 
damages  " — perils  "on  "  and  not  "of"  the  seas. 

The  bill  of  lading,  then,  is  the  ship's  receipt  for  the  goods, 
and  evidence  of  the  terms  of  the  contract  of  carriage.  It  has, 
however,  next,  this  important  quality  or  function  :  it  is  a  docu- 
ment entitling  to  possession  of  the  goods  to  which  it  relates.  It 
practically  always  provides  that  delivery  of  the  goods  shall  be 
made  "  to  order  ",  this  word  being  inserted  in  the  space  provided 
for  the  name  of  the  consignees.  This  means  to  the  shippers'  order. 
The  shippers'  name  is  always  shown,  and  they  endorse  the  bill 
of  lading  with  their  signature  in  blank  ;  and  this  endorsement  is 
regarded  as  their  order  in  favour  of  the  parties  presenting  the  bill 
of  lading  for  delivery  of  the  goods.  The  holder  of  the  bill  of 
lading,  duly  endorsed,  is  in  effect  the  owner  of  the  goods,  or  at 
any  rate  he  has  the  right  to  their  possession  on  payment  of  any 
freight  due  on  them  ;  and  by  endorsing  the  bill  of  lading  over 
to  a  third  party  he  can  transfer  his  right  of  possession.  And  as 
a  matter  of  fact  advances  are  constantly  made  by  bankers  and 
others  against  goods,  on  the  bills  of  lading  being  thus  endorsed 
over  to  them.  If  the  goods  are  still  afloat,  then  the  marine 
policy,  similarly  endorsed,  is  handed  over  with  the  bills  of  lading. 
It  will  be  seen,  then,  that  the  bill  of  lading,  besides  being  a 
mercantile  document  of  very  great  antiquity,  is  one  of  the  very 
first  importance. 


BILL   OF   LADING  83 

The  bill  of  lading  is  now  generally  made  out  in  sets  of  three — 
sometimes  two  ;  but  there  is  no  rule  or  law  on  the  subject.  One 
copy  is  as  good  as  the  others  or  other,  and  when  the  goods  have 
been  delivered  against  presentation  of  one  copy,  the  rest  become 
void — a  system  open  to  fraudulent  abuse,  but  apparently  inevit- 
able. The  document  is  made  out  in  triplicate  or  duplicate, 
because  it  has  to  be  sent  to  the  consignee  to  await  arrival  of  the 
ship  at  destination,  and  the  copies  are  sent  out  by  following 
posts  to  insure  the  safe  arrival  of  at  any  rate  one  copy.  Each 
copy  made  out  in  the  United  Kingdom  has  to  bear  a  sixpenny 
impressed  stamp. 

Now  let  us  consider  a  form  of  this  all-important  document. 
Like  the  charterparty,  the  bill  of  lading  is  often  framed  to  suit  the 
special  requirements  of  the  particular  trade,  and  for  many  trades 
there  is  a  standard  or  generally  accepted  form.  Some  shipowners, 
however,  have  their  own  special  form  and  will  sign  no  other. 
The  form  we  will  take  for  examination  is  a  well  known  "outwards" 
Eastern  form^ 

It  will  be  noticed  that  almost  the  first  word  is  a  "hedge" — 
not  unreasonable — on  the  part  of  the  owners ;  shipped  in 
"apparent"  good  order.  This  word  is  a  modern  interpolation. 
If  memory  may  be  trusted,  the  old  beginning  was,  or  was  often, 
"  Shipped  by  the  Grace  of  God  in  good  order  and  condition  on 
board  the  good  ship...."  Then  immediately  follows  a  declaration 
of  the  shipowners'  right  to  tranship,  deviate,  tow  and  assist ;  and 
so  forth.  The  blank  space  following  is  for  statement  of  the 
number  of  packages,  which,  with  their  marks,  numbers  and 
weight  or  measurement,  have  to  be  described  in  a  wide  margin 
provided  at  the  left.  The  shipowners'  risk  is  to  cease  on  delivery 
from  the  ship's  deck,  from  which  probably  the  goods  would  be 
lifted  by  the  shore  cranes  (cf  p.  74).  As  a  general  rule  or  very 
commonly  the  goods  are  lifted  on  to  the  deck  by  the  ship's 
hoists  and  then  picked  up  by  the  shore  cranes.  The  next  blank 
space  is  for  insertion  of  the  name  of  the  port  at  which  the  goods 
shall  be  discharged — the  long  small-type  list  of  a  great  variety 
of  perils  "excepted"  :  the  last  word  on  the  list.  It  will  be  seen 
that  the  list  of  exceptions  is  about  as  complete  and  comprehensive 

^  In  pocket  at  end  of  book. 

6—2 


84  BILL   OF   LADLNG 

as  experience  and  a  lively  anticipation  can  well  make  it.  Still, 
claims  do  arise,  both  frequent  and  heavy,  which  the  shipowners 
have  to  pay  or  think  it  politic  to  meet.  The  thought  may  here 
suggest  itself  that  to  give  the  shipowners,  in  effect,  carte  blanche 
to  do  what  they  like  with  the  goods  is  not  a  stipulation  likely  to 
enhance  safe  carriage.  The  business  of  shipowning,  however,  is 
like  other  commercial  enterprises  in  that  its  success  depends 
largely  on  the  reputation  and  good  name  of  the  carriers.  Ship- 
owners on  a  particular  route  are  in  keen  competition  with  one 
another  for  the  business  of  regular  and  important  shippers,  and 
the  last  thing  they  wish  is  to  earn  with  their  supporters  a  bad 
name  either  for  damaging  goods  or  for  want  of  a  conciliatory 
spirit  in  dealing  with  their  clients.  What  they  suffer  from 
terribly  is  thefts,  mostly  committed,  probably,  during  loading 
and  stowage.  In  a  recent  police  court  case  in  which  half-a-dozen 
stevedores  leaving  the  docks  were  found  to  be  loaded  up  with 
stolen  property,  it  was  stated  that  on  a  previous  outward  voyage 
of  the  same  steamer  the  company,  a  well-known  line,  had  had 
to  pay  nearly  i^3000  in  settlement  of  claims  for  lost  cargo — 
"lost"  meaning,  presumably,  stolen.  The  bill-of-lading  exceptions 
would  almost  certainly  embrace  theft,  and  yet  the  shipowners 
compensated  the  owners  of  the  goods,  or  certain  of  them. 

The  exceptions  are  many  and  various,  and  mostly  they  speak 
for  themselves.  One  of  them,  however,  that  relating  to  "  negli- 
gence or  default  of  owners  ",  will  be  specially  referred  to  presently 
under  the  head  of  "  Seaworthiness." 

Then,  the  freight:  freight  and  primage.  Primage  gave,  under 
ancient  usage,  a  sort  of  cash  commission  or  reward  to  the 
captain,  and  the  word  is  still  left  in  the  print,  but  the  charge  is 
now  exceptional,  and  when  made  at  all  is  probably  an  addition 
to  the  shipowners'  freight.  The  freight  is  to  be  paid  before 
sailing,  ship  lost  or  not  lost.  This,  however,  is  an  outward  bill 
of  lading ;  with  homeward  goods  the  freight  is  generally,  but 
not  always,  payable  on  delivery.  Then  comes  a  reference  to 
general  average,  which  we  will  refer  to  later.  Next,  a  most 
important  provision  relative  to  the  seaworthiness  of  the  ship — 
really,  a  supplement  to  the  exceptions.  Then,  many  words 
relating    to    the    necessity    for    proper    packing   and    securing 


SEAWORTHINESS  85 

packages  of  certain  goods  and  for  specially  declaring  the  value 
of  costly  packages  :  and  so  on.  Then,  detailed  provisions  as  to 
discharge,  over-carriage  and  so  forth,  which  speak  for  themselves. 
The  length  of  the  printed  lines,  8^  inches  in  the  original,  their 
closeness  together  and  the  smallness  of  the  type,  may  be  good 
for  the  lawyers  but  is  certainly  trying  to  the  eyes.  Imbedded  in 
all  this  phraseology  is,  however,  the  following  very  important  (and 
reasonable)  provision  ;  namely,  that  if  the  course  of  the  voyage 

"is  or  threatens  to  be  impeded... anywhere... by  quaran- 
tine...war  or  disturbances... the  master  may  at  the  risk  and 
expense  of  the  owners  of  the  goods... tranship  and  store... 
or  land  and  store  or  otherwise  dispose  of  the  cargo... at  the 
risk  and  expense  of  the  owner  of  the  goods." 

The  other  provisions  call  for  no  special  comment.  They 
conclude  with  a  declaration  that  the  bill  of  lading  shall  con- 
stitute the  carriage  contract.  "In  witness  whereof  the  master 
or  agent  of  the  said  ship  has  signed... bills  of  lading,  all  of  this 
tenor  and  date,  one  of  which  being  accomplished  the  others 
to  stand  void  "  :  date  and  signature,  the  latter  "By  authority  of 
owners " — which  mostly  means  that  the  ship's  agents  sign  in 
lieu  of  the  captain.  The  old  form  added  as  a  pious  conclusion 
"  And  so  God  send  the  good  ship  to  her  designed  port  in  safety. 
Amen."  This  is  now  left  out — perhaps  to  give  more  room  for 
exceptions.  Of  course,  all  bills  of  lading  are  not  so  voluminous 
as  the  specimen  adopted ;  some  are  comparatively  short,  and 
a  good  deal  depends  on  the  voyage  and  calling-ports,  but  this  is 
probably  quite  a  fair  example. 

And  now  we  will  look  into  the  question  of  seaworthiness, 
the  one  risk  which  we  do  not  find  mentioned  in  the  exceptions. 

Seaworthiness 

In  the  case  of  our  charterparty,  it  will  be  remembered  that 
it  sets  out  with  mention  or  declaration  that  the  ship  is  "  tight, 
staunch  and  strong  and  in  every  way  fitted  for  the  intended 
voyage" — ancient  and  stereotyped  words.  The  bill  of  lading 
contains  no  such  affirmation  :  it  has  even  ceased  to  refer  to  the 
"  good  "  ship.  The  omission  is,  however,  immaterial :  the  law 
implies  that  the  ship  shall  be  warranted  seaworthy  in  herself  and 


86  SEAWORTHINESS 

"  in  every  way  fitted  ",  etc.  She  has,  in  fact,  to  be  not  merely  sea- 
worthy but  carj^jo- worthy :  fitted  to  carry  safely  the  cargo  she  lays 
herself  out  or  undertakes  to  carry.  Shippers  entrust  their  cargo 
to  the  shipowners,  and  the  shipowners  accept  the  cargo,  with  this 
full  understanding.  As  regards  the  ship,  if  she  sails,  for  example, 
with  an  unqualified  captain,  an  insufficient  crew,  a  defective  hull 
or  steering  gear,  or  similarly,  she  is  unseaworthy.  She  may, 
however,  be  seaworthy  as  regards  herself  but  not  seaworthy  as 
regards  the  cargo.  She  is  to  be  "  in  every  way  fitted  "  to  carry 
the  cargo  safely  on  the  intended  voyage. 

Now,  say,  for  example,  that  she  contracts  to  carry  live  stock — 
horses.  In  the  previous  voyage  she  had  a  similar  cargo.  Disease 
occurred  amongst  the  animals,  and  mortality.  Her  holds,  to 
make  her  "  seaworthy  "  for  a  fresh  live-stock  cargo,  should  have 
been  thoroughly  disinfected.  This  was  not  done.  Disease  and 
mortality  occur,  in  consequence,  amongst  the  new  cargo.  The 
loss  was  due  to  "unseaworthiness",  and  the  shipowners  are  liable  : 
the  vessel  was  not  "in  every  way  fitted."  Amongst  the  exceptions 
it  is  expressly  declared  that  the  shipowners  shall  not  be  liable 
for  mortality.  This  is  no  good.  The  exception  presupposes 
a  seaworthy  ship. 

Or  tea  or  rice  is  carried  after  a  cargo  of  petroleum  and  gets 
tainted.  The  exceptions  preclude  liability  for  taint.  No  good  : 
the  holds  not  having  been  properly  steamed  out  to  render  them 
fit  for  a  cargo  known  to  be  susceptible,  the  ship  was  not  sea- 
worthy :  not  "  in  every  way  fitted."  Or  specie  is  shipped  :  valuable 
stuff,  practically  undamageable  but  peculiarly  liable  to  theft. 
It  is  shipped  under  the  assumption  that  it  will  be  stowed  in 
a  properly  secured  strong-room.  But  the  strong-room  is  not 
a  properly  secured  space,  and  robbery  is  effected.  The  exceptions 
specially  disclaim  liability  for  robbery  or  theft,  but  to  no  purpose ; 
the  ship  was  not  seaworthy  :  not  specie-worthy.  Or,  once  more; 
the  ship  is  insulated  for  the  conveyance  of  frozen  meat,  and  carries, 
of  course,  special  refrigerating  engines.  The  engines  break  down, 
owing  to  initial  defect,  and  the  cargo  is  spoiled.  The  exceptions 
specially  repudiate  liability  for  loss  caused  by  breakdown  of 
machinery,  but  this  means  an  accidental  breakdown  :  the  engines 
have  got  to  be  fit  for  their  work  at  the  outset  of  the  voyage. 


SEAWORTHINESS  87 

Now,  this  seaworthiness  obligation  is  a  nightmare  to  ship- 
owners :  they  never  know  where  they  are.  Exceedingly  difficult 
questions,  in  fact,  arise  as  to  the  cause  or  degree  of  unseaworthi- 
ness and  as  to  the  proper  attribution  of  the  responsibility  for  it ; 
and  when  such  questions  have  been  determined  it  may  still  have 
to  be  decided  whether  or  not  the  exceptive  wording  is  so 
unambiguous  and  so  applicable  as  to  protect  the  owners.  For 
any  ambiguity  in  the  phraseology  of  a  contract  is  judicially 
interpreted  against  the  grantors,  in  this  case  the  shipowners.  A 
short  way  out  would  no  doubt  be  to  disclaim,  in  a  few  short  and 
perfectly  clear  words,  liability  for  anything  at  all ;  but  it  may  at 
least  be  doubted  whether  the  law  would  sanction  the  disclaimer, 
by  shipowners,  of  liability  for  their  own  personal  neglect,  at  all 
events.  To  send  a  ship  to  sea  in  a  state  to  endanger  life  is, 
indeed,  a  statutory  misdemeanour ;  and  the  employment  of 
possibly  unsea worthy  ships  would  obviously  be  contrary  to  the 
whole  spirit  of  modern  shipping  legislation.  Should  the  courts 
in  a  particular  case  be  unable  to  declare  the  contract  bad,  there 
might  be  a  commercial  outcry  which  would  almost  certainly  result 
in  an  Act  of  Parliament :  and  might  not  such  an  Act  rip  up  the 
whole  subject  of  exceptions,  and  possibly  curtail  the  contractual 
powers  now  so  valuable  to  shipowners  ?  The  shipowners  find 
themselves,  in  fact,  in  a  dilemma.  To  get  out  of  it  so  far  as  they 
can  they  resort  to  special  provisions  in  the  bill  of  lading.  For 
example,  in  the  italic  list  of  exceptions  in  the  bill  of  lading  which 
we  have  been  considering,  "  negligence  or  default  of  owners  "  is 
inserted;  and  the  failure  to  provide  a  seaworthy  ship  \s  prima  facie 
neglect  or  breach  of  duty  on  the  part  of  the  owners.  Then  later 
there  is  another  provision  in  this  connexion,  of  which  the  con- 
sideration is  deferred  until  we  discuss  the  subject  of  General 
Average. 

Now,  whether  non-liability  for  losses  due  to  unseaworthiness, 
in  its  wider  sense,  if  caused  by  negligence  or  default  of  owners, 
would  be  covered  by  these  exceptive  words  would  depend  on 
their  conjunction  with  the  particular  facts  and  their  correlation 
with  all  the  other  provisions  of  the  document.  It  is  very  delicate 
ground  ;  even  to  sum  up  the  position  is  not  easy.  And  similarly 
with  other  such  exceptive  words,  of  which  the  variety  is  great, 


88  SEAWORTHINESS 

having  the  same  aim  :  as,  for  example,  words  in  the  sense  that 
the  ship  shall  be  deemed  seaworthy  if  the  owners  have  exercised 
due  diligence  to  make  her  so.  The  courts  take  a  very  exacting 
view  of  all  such  special  exceptions.  If,  as  already  stated,  there  is 
any  doubt  they  give  it  against  the  shipowners.  They  say,  in 
effect,  "  Your  contract  has  to  be  interpreted  by  ordinary  shippers 
in  a  reasonable  business  sense.  The  plaintiffs  did  so  read  it,  and 
did  not  find  in  it  the  meaning  you  say  it  was  intended  to  bear. 
It  is  for  you  to  make  your  meaning  clear  beyond  reasonable 
doubt,  and  if  you  leave  it  open  to  ambiguity  or  uncertainty,  this 
is  your  own  fault.  Judgment  must  be  for  the  plaintiffs."  And 
this  happens  by  no  means  infrequently. 

If  the  damage  be  in  the  nature  of  "ship  damage" — perils 
"  on  "  the  seas  (p.  82) — it  will  ordinarily  not  be  recoverable  from 
underwriters.  Some  goods,  however — frozen  meat  and  specie, 
notably — are  insured  against  practically  all  risks,  of  whatever 
nature.  If  the  underwriters  are  liable,  and  the  facts  seem  to 
point  to  unseaworthiness,  then,  having  paid  the  loss,  they  sue 
the  shipowners  in  the  name  of  their  assured.  The  shipowners, 
however,  may  be  themselves  insured  in  one  of  the  great  ship- 
owners' mutual  protection  clubs,  and  the  action  on  their  side 
will  in  such  event  be  fought  by  the  club  in  the  name  of  the 
shipowners.  So  that  the  names  both  of  plaintiffs  and  defendants 
may  in  some  of  such  cases  be  practically  dummy  names. 

Ship-Brokers 

The  middle  man  seems  to  be  an  almost  inevitable  incident  of 
trade  and  commerce ;  and  the  more  a  business  or  trade  becomes 
specialised,  the  greater  the  opportunity  of  the  broker.  And 
whether,  for  example,  the  letting  or  hiring  of  a  house  be  in 
question,  or  the  letting  or  hiring  of  a  ship,  the  trained  ex- 
perience of  the  middle  man  will  be  valuable  to  either  side. 
The  business  of  the  ship-broker  has,  however,  no  narrow  limitation. 
In  anything  to  do  with  ships — their  buying  and  selling,  their 
letting  or  hiring,  their  insuring,  their  chartering,  their  loading  or 
their  discharge — his  expert  knowledge  is  of  value.  But  while  a 
shipowner  may  have,  and  mostly  does  have,  brokerage  as  an 
adjunct  to  his  business,  a  ship-broker  may  be  also  an  insurance 


SHIP-BROKERS  89 

broker,  and  find  in  both  branches  an  active  occupation.  In  this 
dual  capacity  he  will  be  doubly  well  equipped.  He  will  know 
not  a  little  of  the  law  of  "  average  ",  and  in  the  laws  of  charter 
and  affreightment  he  should  be  a  master  of  his  subject.  As  a 
ship-broker,  he  stands  often  in  an  owner's  place.  Clause  43  in 
our  charterparty  provides  "  Steamer  to  be  consigned  at  Port  of 
Discharge  to  Owners  or  their  Agents,  by  whom  the  Steamer 
is  to  be  reported  at  the  Custom  House."  Ships  owned  at 
any  port  in  the  kingdom  may  some  day  find  their  way  to 
London  or  to  Liverpool  or  other  port  to  load  or  to  discharge, 
and  their  owners,  domiciled  elsewhere,  must  be  represented  on 
the  spot.  Shipping  manuals  at  most  ports  contain  a  list  of 
"  loading  brokers."  In  London  they  number  some  eight  or  nine 
score.  Similarly  with  foreign-owned  vessels  arriving  at  a  British 
port  ;  and  ordinarily  these  are  "  consigned  "  to  a  brokerage  house. 
A  broker  who  is  well  known  in  this  important  class  of  business 
must  either  be  himself  well  acquainted  with  foreign  languages — 
and,  indeed,  with  foreign  shipping  laws  and  usages — or  he  must 
have  on  his  staff  clerks  who  are  thus  equipped.  A  ship-broker 
in  Antwerp  once  mentioned  to  the  writer  that  at  that  cosmo- 
politan port  a  shipping  clerk  was  expected  to  be  familiar  with 
at  least  four  languages. 

If  a  ship  "  consigned  "  to  London  brokers  arrives  with  a  cargo, 
it  rests  with  the  brokers  to  arrange  with  the  Port  Authority, 
probably  after  ascertaining  the  views  of  the  principal  cargo 
owners,  the  dock  at  which  she  shall  discharge;  and  on  her  arrival 
they  will  see  to  the  due  fulfilment  of  Customs  formalities.  The 
brokers  will  collect  the  freight,  if  this  be  payable  at  port  of 
destination,  provide  for  the  ship's  disbursements,  and  remit,  less 
their  own  charges,  the  balance  to  the  owners.  Then  it  will  be 
for  the  owners,  in  consultation  with  the  expert  brokers,  to  decide 
as  to  the  next  employment  of  the  ship.  She  may  be  "put  on  the 
berth  "  to  load  a  general  cargo  outwards,  or  it  may  be  decided  to 
send  her  in  ballast  to  another  port  to  load,  consigned  once  more  to 
agents  or  brokers.  Or  she  may  be  chartered,  either  to  carry  a 
cargo  from  her  discharging  port,  or  perhaps  to  proceed  to  load 
coals  at  the  Tyne  or  Cardiff,  or  to  leave  in  ballast  for  some 
oversea  port  to  load  a  cargo  for  Europe  or  elsewhere. 


90  SIIir-BROKERS 

If  it  be  decided  to  load  her  "on  the  berth  ",  then  it  will  rest 
with  the  brokers  to  get  together  cargo  for  her.  Cargo,  especially 
in  these  days  of  competition,  does  not  flow  naturally  to  a  ship  ; 
and  this  is  where  the  brokers'  experience  comes  in.  They  will 
have  on  their  list  the  names  of  the  firms  in  the  habit  of  shipping 
cargo  on  the  vo)'age  in  question,  and  in  addition  to  advertising  the 
voyage  and  the  loading  of  the  ship  and  the  name  of  the  loading 
brokers,  the  brokers  will  have  to  notify  such  firms  by  shipping 
card  or  approach  them  personally.  The  rates  of  freight, 
according  to  the  goods,  will  be  more  or  less  governed  by  the 
market  conditions,  but  here  the  diplomacy  of  the  brokers  will  be 
valuable.  Promises  obtained  of  weight  or  measurement  goods 
will  be  recorded,  and  it  will  be  the  object  of  the  brokers  on  the 
one  hand  to  fill  the  ship  and  on  the  other  not  to  promise  space 
in  excess  of  her  capacity.  A  shipper  whose  goods  are  "  shut 
out "  not  through  any  fault  of  his  own  but  because  the  brokers 
have  promised  more  than  they  can  perform  is  apt  to  feel  aggrieved, 
and  brokers  cannot  afford  to  risk  offending  their  supporters. 
The  brokers  ordinarily  sign  the  bills  of  lading  on  behalf  of  the 
captain  and  owners,  collect  the  freight  if,  as  is  generally  the  case, 
it  be  payable  on  loading  of  the  goods  "  ship  lost  or  not  lost",  defray 
the  ship's  disbursements,  clear  the  ship  outwards  at  the  Customs, 
deduct  their  own  expenses  and  transfer  the  balance  to  the  owners. 
Part  of  the  process  of  clearing  the  ship  is  the  making  out  of  her 
Manifest  or  cargo-list  and  lodging  it  with  the  Customs  (p.  239). 
This  has  similarly  to  be  done  in  the  case  of  vessels  entering 
inwards.  The  Customs  then  have  a  list  of  all  the  cargo  in  the 
ship.  The  various  shippers  or  exporters  have  also  individually 
to  "pass  an  entry"  for  their  goods  on  a  Customs  printed  form, 
in  which  the  goods  are  described  and  their  value  stated.  The 
authorities,  with  the  Manifest  before  them,  are  then  able  to 
"jerque"  the  entries,  i.e.  to  see  that  for  every  shipment  the 
merchant's  entry  has  been  passed.  Merchants  found  to  be 
remiss  render  themselves  liable  to  fine.  The  information  thus 
obtained  by  the  Customs  eventually  passes  into  the  Board  of 
Trade  returns.  The  brokers  have  now  formed  an  "  Institute  of 
Shipbrokers  "  with  Mr  T.  L.  Devitt,  the  well-known  chairman  of 
Lloyd's  Register,  as  its  first  president. 


VOYAGES    UNDER   CHARTER  91 

Voyages  under  Charter 

It  is  stated,  whether  correctly  or  not,  that  about  70  per  cent, 
of  our  total  tonnage  is  tramp  tonnage.  At  any  given  time  a 
considerable  portion  of  this  tonnage  will  either  be  under  charter 
or  open  to  be  chartered.  If  a  vessel  at  home  secures  a  charter 
to  proceed  to  some  distant  port,  there  to  arrive  by  or  before  a 
certain  date  to  load  a  cargo,  unless  she  can  manage  to  secure 
a  cargo  outwards,  either  to  the  same  port  or  to  some  port  more 
or  less  on  the  way,  she  will  have  to  go  out  in  ballast.  Steamers 
nowadays  are  ordinarily  built  with  tanks  to  carry  water  ballast. 
Still,  an  outward  cargo  will  be  greatly  to  the  good,  and  fortunately 
we  are  in  a  favoured  position  in  this  respect,  for  there  is  a  wide 
demand  for  our  coal  for  bunkering  at  ports  of  call  or  loading,  as 
well  as  for  South  American  and  other  railways,  for  power  stations, 
gas-works  and  so  forth.  The  common  ability  to  carry  coal  out 
in  view  of  a  charter  home  tends,  of  course,  to  cheapen  homeward 
freights,  which  is  all  to  the  good.  When  the  oversea  railway 
undertakings  are  extending  their  lines  or  relaying  old  tracks,  then 
rails  may  be  carried  out.  Or  a  cargo  of  cement  may  be  obtained, 
or  glass-work  and  rough  stuff  at  Antwerp  or  Hamburg  :  all  is  fish 
that  comes  to  the  net  of  the  tramp.  But  when  a  tramp  has 
obtained  an  outward  charter,  her  owners  will  aim  at  securing 
another  contract  for  her  to  be  cabled  to  her  final  destination. 
From  there  she  may  perhaps  have  to  sail  across  the  seas,  for  a 
voyage  long  or  short,  in  ballast,  to  take  up  a  new  charter.  The 
Suez  Canal  returns  for  191 2  show  that  no  less  than  542  vessels 
passed  through  the  Canal  in  the  year,  in  ballast,  having  an 
aggregate  measurement  of  1,565,779  tons. 

When  the  trade  of  the  world  is  good  there  is  likely  to  be  plenty 
of  work  for  the  tramps  ;  when — but  it  does  not  happen  often — 
a  world-boom  prevails,  then  their  owners  coin  money.  When 
the  contrary  condition  obtains,  then  they  may  be  thankful  for 
almost  any  job  which  will  keep  their  ship  employed,  and,  failing 
even  this,  they  may  suffer  the  chagrin  of  having  to  lay  her  up 
and  let  her  "eat  her  head  off."  With  the  tramp-owners  as  with 
the  ports,  it  is  very  apt  to  be  a  case  of  all  feast  at  one  time  or  of  all 
fast  at  another,  but  mostly  it  is  somewhere  between  the  two.    Of 


92  VOYAGES    UNDER   CHARTER 

course,  whether  for  outward  or  for  homeward  cargo,  the  vessel 
and  the  tonnage  to  be  carried  must  approximately  correspond  ; 
and  exporters  or  importers,  knowing  the  amount  of  cargo  they 
require  to  be  carried,  will  make  their  wants  known  for  a  vessel  of 
corresponding  size.  But  if  for  the  big  tramps  only  big  jobs  are 
suitable,  for  the  smaller  cargoes  and  the  shallower  ports  there  is 
no  lack  of  suitable  ships.  There  is  ore  to  be  carried  home  from 
Spain,  grain  or  seed  and  timber  from  the  Baltic,  and  so  forth. 
And  indeed  from  all  ports  and  parts  raw  material,  grain,  rice  and 
seed  are  coming  to  Britain  and  the  Continent  in  an  unending 
stream.  Within  the  last  three  or  four  years  the  Eastern  soya 
bean  for  the  oil-mills  has  given  great  and  till  then  unknown 
employment.  Our  textile  industries  require  unlimited  supplies 
of  cotton  from  the  States  or  Egypt  or  wherever  it  can  be  produced. 
The  oil-mills  and  jute  and  hemp  works  must  be  kept  continually 
going  ;  and  so  on.  A  certain  amount  of  these  goods  comes  in 
parcels  with  mixed  cargoes  by  the  cargo  liners,  but  mills  and 
works  which  are  consumers  on  a  large  scale,  while  glad  of  the 
small  parcels,  require  whole  ship-loads,  and  the  tramps  are  always 
ready  to  assist  them.  Most  or  much  of  the  homeward  and  cross- 
voyage  chartering  is  done  some  time  ahead,  as  this  will  enlarge 
the  field  of  competition  for  the  charterer.  If  he  puts  it  off  too 
late  he  may  find  himself  in  a  corner  and  at  a  disadvantage 
accordingly.  The  tramp-owners,  too,  have  no  wish,  if  they  can 
help  it,  to  find  themselves  without  a  charter  or  forced  at  the 
eleventh  hour  to  make  an  unsatisfactory  contract  as  the  al- 
ternative to  being  left  out  in  the  cold. 

There  was  mentioned  not  long  ago  in  the  shipping  Press  the 
case  of  a  steamer  which  had  been  practically  twice  round  the 
world  on  her  first  voyage.  She  left  Glasgow  for  Philadelphia,  in 
ballast,  and  no  doubt  under  charter,  and  loaded  oil  in  cases. 
This  cargo  she  took  out  to  Japan,  going  round  the  Cape  to  save 
Canal  dues.  From  Japan  she  proceeded  to  Brisbane  and 
Australasia ;  probably  carrying  rice  under  charter.  From 
Tasmania  she  went  to  Bombay,  whether  in  ballast  or  carrying 
cargo  does  not  appear.  From  Bombay,  possibly  with  a  certain 
amount  of  cargo  for  Buenos  Ayres,  she  proceeded  to  Burmah  and 
loaded  cargo  for  the  River  Plate.     There  she  discharged  part  of 


VOYAGES  UNDER  CHARTER        93 

her  cargo  and  carried  the  rest  on  to  Chih'an  ports.  Thence, 
doubtless  under  charter,  and  probably  in  ballast,  she  sailed  for 
San  Francisco  and  Portland,  Oregon,  where  she  loaded  up, 
probably  with  flour  and  canned  stuff,  for  Japan.  From  Japan  to 
Java,  where,  no  doubt  again  under  charter,  she  shipped  a  cargo 
of  sugar  for  Greenock.  Probably  the  various  parties  at  the  over- 
sea ports  concerned  cabled  to  their  agents  or  principals  in 
London,  who  at  the  Baltic  or  elsewhere  arranged  the  charters 
with  the  owners  of  the  steamer  or  their  agents ;  and  the  owners 
of  the  steamer  then  cabled  the  necessary  instructions  to  the 
ship's  agents  at  the  port  at  which  she  had  arrived  or  was 
expected.  When  once  a  tramp  steamer  has  sailed  with  a  cargo 
outwards  she  rarely  knows  what  will  be  her  next  destination  or 
when  or  on  what  voyage  she  will  return.  She  learns,  stage  by 
stage,  by  cablegram  from  her  owners.  Homeward-bound  vessels 
laden  more  especially  with  grain  frequently  sail  without  their 
port  of  discharge  being  determined  (cf  p.  265).  They  must 
call  for  orders  at  some  port  on  the  way  in  order  to  learn  their 
destination,  the  orders  being  ordinarily  cabled  to  them  through 
Lloyd's  (p.  127).  This  destination  the  last  buyer  of  the  cargo 
afloat  has  to  decide.  The  following  indicates  the  ordinary  ports 
of  coaling  or  ports  of  call  for  such  vessels  : 

Grain  Shipments,  '^ for  orders''^ 
Shipment  to  Europe  is  either  by : 
Steamers. 

(a)     In  full  cargoes,  under  charter  :  or 
{b)     In  parcels  by  regular  traders  or  liners. 
Sailing   Vessels. 

{c)     In  full  cargoes,  under  charter  :  or 
{d)     In  parcels  by  general  ships. 

The  part-cargoes  are  generally  to  fixed  destination,  the  full 
cargoes  generally  "  for  orders  "  but  sometimes  to  fixed  destina- 
tion— whether  steamers  or  sailing  vessels. 

Wheat  shipment  by  sailing  vessel  is  now  practically  confined 
to  Australasia  and  Chili. 


94        VOYAGES  UNDER  CHARTER 

Steamers  fro)H  North  Atlantic  ports  and  sailing  vessels  as 
above.  Sail  direct  to  Queenstovvn  or  Falmouth  for  orders. 
Parcels  by  liners  (jr  general  ships  have,  of  course,  fixed  des- 
tination. 

Steamers  from  India  {Full  Cargoes  or  Parcels)  and 
Australia  {Parcels)  vid  Suez  Canal 

Ordinarily  coal  at  Port  Said,  but  occasionally  perhaps  at 
Aden. 

Some  steamers  (not  liners)  may  possibly  coal  at  Algiers  or 
Oran,  some  perhaps  at  Gibraltar, 

Steamers  for  orders  will  probably  get  them  at  Port  Said  ; 
possibly  at  a  later  port. 

(No  Australian  full  cargoes  by  this  route.) 

Steamers  from  Black  Sea,  etc. 

Mostly  full  cargoes,  with  destination  largely  fixed  in  advance. 
Coal  and  (if  required)  orders  generally  at  Gibraltar,  but  possibly 
at  Algiers. 

Steamers  vid  Cape  of  Good  Hope  or  Cape  Horn,  or  from  the 
Argentine:  after  coaling  eit/ier  {perhaps)  at  Cape  Town  or 
at  River  Plate,  Rio,  or  other  Brazilian  ports 

Call  for  orders  (unless  destination  fixed)  and  coal  at  Cape 
Verde  Islands,  Madeira  or  Azores  ;  possibly  at  Dakar. 

On  getting  their  orders  they  may  proceed  either  direct  to 
destination  or  to  Falmouth  for  final  orders. 

The  final  purchaser  of  the  cargo,  holding  the  shipping  docu- 
ments, has  of  course  the  right  to  decide  what  the  ship's  destination 
shall  be,  within  the  terms  of  the  charter.  Most  of  the  big  grain- 
dealers  are  in  relations  with  firms  at  the  various  ports  of  call, 
and  are  thus  able  to  cable  their  instructions  direct.  Or  this  may 
be  done,  and  more  probably  will  be  done,  through  the  original 
charterers,  who,  of  course,  will  be  in  close  touch  with  the  ship- 
owners. The  subject  of  charter  is  further  dealt  with  in  connexion 
with  "Ship's  Papers"  (p.  265). 


RATES   OF    FREIGHT  95 

Rates  of  Freight 

Freight,  as  we  have  seen  (p.  36),  is  usually  charged  on  the 
ton  avoirdupois  when  the  goods  are  in  bags  or  bulk,  and  on  the 
measurement  ton  of  40  cubic  feet  where  bales  or  cases  or  other 
packages  are  concerned.  In  the  case  of  the  cargo  liners  there  is 
ordinarily  a  schedule  of  rates  for  various  goods  On  cotton  or 
frozen  meat  freight  is  commonly  charged  at  a  fraction  of  a  penny 
per  pound  weight  of  the  goods.  On  gold  it  will  be  based  on 
value.  There  may  be  exceptions,  but  the  foregoing  summarises 
the  position  generally.  As  a  rule,  more  especially  for  outward 
cargoes,  the  contract  is  that  the  freight  shall  be  due  on  shipment 
of  the  goods,  "  ship  lost  or  not  lost ",  with,  of  course,  in  the  latter 
event  no  repayment.  When  the  freight  is  payable  on  shipment 
the  shippers  insure  it,  in  effect,  when  they  insure  the  goods :  they 
add  it  to  the  value  of  the  goods  and  let  the  insurance  on  the 
goods  include  it.  In  the  case  of  a  cargo  of  coal,  one-third  or  half 
the  freight  may  be  paid  on  shipment  and  the  balance,  which  is 
at  the  shipowners'  risk,  on  deliver)-.  But  all  these  things,  though 
largely  governed  by  usage,  are  subject  to  special  agreement. 
When  or  so  far  as  the  freight  is  payable  at  destination,  it  is 
insured  by  the  shipowners. 

Freights  by  sailing  vessel  are  commonly  less,  sometimes  a 
good  deal  less,  than  by  steamer,  and  by  a  mail  steamer  higher 
than  by  a  regular  trader.  Tramp  freights  are  usually  lower  than 
by  the  regular  liners,  the  greater  speed  and  regularity  of  the 
latter  making  them  more  desirable,  as  well  as  more  expensive 
to  run.  Every  route  and  destination  has,  theoretically  at  all 
events,  rates  of  freight  peculiar  to  itself  If,  however,  a  steamer 
cannot  count  on  getting,  at  a  certain  port,  a  full  freight  home,  as 
sometimes  happens,  she  will  probably  expect  a  higher  rate  for 
the  outward  voyage.  The  cost  of  stowage,  or,  as  it  is  called, 
stevedoring,  comes  somewhat  into  the  question  of  the  rate  to  be 
charged.  Some  cargoes,  like  coal  or  grain  in  bulk,  require  very 
little  stowage,  while  to  stow  other  goods  economically  or  safely  is 
something  of  an  art.  Railway  iron,  for  example,  calls  for  ver>' 
special  and  careful  stowing.  General  miscellaneous  and  perhaps 
valuable  goods  need  very  careful  handling,  both  to  avoid  breakage 


96  RATES    OF   FREIGHT 

and  to  save  every  inch  of  stowage  space.  Wool  in  hydraulic- 
pressed  bales  is  stowed,  by  the  aid  of  jacks,  so  closely  that 
a  knife-blade  could  hardly  be  inserted  between  the  bales.  The 
careful  and  economical  stowage  of  cargo  is  more  or  less  of  an  art 
in  which  the  interests  both  of  ship  and  of  shipper  are  concerned. 
Where  freight  is  paid  on  measurement  the  three  dimensions  of 
each  package  are  separately  taken  down  and  recorded.  A  printed 
"  measurement  book  "  is  then  referred  to,  which  shows  the  cubic 
contents  of  the  three  measurements  at  a  glance.  When,  as  with 
tea-chests,  all  the  cases  are  of  the  same  size,  only  a  certain 
number  of  them  are  measured.  Goods  in  sacks  or  bags  are 
weighed  perhaps  five  or  more  at  a  time.  Whether  in  the  case  of 
measurement  or  of  weight  or  of  special  goods,  usage  has  long 
settled  the  method  most  convenient  for  adoption. 

The  Cost  of  Ship  Insurance 

Much  in  the  same  way  as  wear-and-tear  and  depreciation  eat 
away  a  ship's  life,  so  does  the  annual  burden  of  insurance  eat 
away  her  profits  ;  and  the  one  is  as  inevitable  as  the  other.  It 
may  be  here  objected  that  some  great  lines  are  "  their  own 
underwriters"  and  therefore  pay  no  insurance  premiums.  This 
is  true  enough,  but  premiums  are  only  a  way  of  reducing  risks  to 
an  estimated  £  s.  d.  equivalent,  and  in  whatever  way  insured,  or 
not  insured,  the  risks  remain  inevitable.  But  the  business  of 
insurance,  in  addition  to  being  carried  on  at  more  or  less  cost — 
in  the  case  of  the  public  companies,  at  very  considerable  cost 
— is,  of  course,  undertaken  as  a  source  of  profit.  Consequently, 
premiums  represent : 

{a)     The  estimated  value  of  the  risk, 
{b)     The  cost  of  the  insurance  system  ;  and 
if)     As  much  profit  as  competition  will  allow  to  be  added 
on  to  {a)  and  (^). 
The  object  of  a  shipping  company  in  "  running  its  own  risk  " 
or  being  "  its  own  underwriter  "  is,  of  course,  to  avoid  paying  out 
under  {b)  and  {/).     In  some  cases  a  company  or  an  owner  may 
insure  his  ships,  or  one  or  more  of  them,  up  to  a  certain  amount, 
and  be  his  own  underwriter  as  regards  the  balance.     This  is  in 
part  due  to  the  British  love  of  compromise  and  in  part  to  the 


THE    COST   OF   SHIP    INSURANCE  97 

well-known  fact  that  underwriters  place  on  the  most  favoured 
footing  vessels  in  which  the  owners  are  themselves  concerned  as 
underwriters.  The  professional  underwriters  fully  appreciate  the 
fact  that  an  owner  whose  own  insurance  fund  is  at  stake  will,  to 
the  utmost  of  his  ability,  leave  nothing  undone  to  preserve  the 
safety  of  his  fleet,  and  this  more  especially  in  the  careful  selection 
and  training  of  the  ofificers.  Then,  again,  this  system  of  joint  or 
part  insurance  may  be  the  earlier  stage  of  an  eventual  full 
insurance  by  the  owners.  Their  object  and  practice  is  year  by  year 
to  place  to  an  internal  insurance  fund,  out  of  profits,  such  a  sum 
as  shall  in  course  of  time  create  a  total  which  shall  be  adequate 
against  losses.  An  insurance  fund  may  take  years  to  build  up  to 
a  figure  which  is  deemed  sufficient,  and  the  process  will  probably 
consist  in  a  gradual  decrease  of  the  liability  insured  outside  and 
a  gradual,  till  finally  total,  domestic  assumption  of  the  balance. 
But  even  when  the  fund  has  been  built  up  to  an  adequate  total, 
the  system  of  adding  to  it  may  be  continued.  The  company  thus 
acquires  a  hidden  reserve,  a  portion  of  which  can,  in  case  of  need, 
be  applied  to  special  purposes  or  used,  in  an  unprofitable  year,  to 
keep  up  the  dividend  payable  to  shareholders.  Obviously,  there- 
fore, a  company  which  adopts  the  method  of  a  partial  insurance 
reduces  the  burden  of  premium-payments  to  third  parties,  while 
those  who  run  entirely  their  own  risk  eliminate  it  altogether. 
But  there  are  other  methods  of  lightening  the  premium-burden. 
Notably,  for  example,  in  the  case  of  vessels  of  great  value,  the 
owners  obtain  a  very  low  rate  by  taking  on  themselves  any  claim 
up  to  a  certain  fixed  amount.  This  may  be,  in  a  very  special 
instance,  /50,CXX),  ;^icx),ooo  or  £1^0,000.  With  the  underwriters' 
liability  thus  materially  reduced  the  owners  can  count  on  a  very 
low  premium  being  charged.  Then  again  some  owners  insure 
only  against  the  risk  of  total  loss,  or  of  total  loss  and  general 
average.  So  that  to  read,  as  one  may,  that  a  vessel  has  been 
insured  at  a  cost  of  so  much  per  cent,  may  convey  practically 
nothing  as  to  the  real  value  of  the  risk  if  it  had  been  covered  in 
the  ordinary  way. 

But  the  risks  to  be  insured  against  are  not  only  those  affecting 
the  vessel  herself  There  is,  in  addition,  the  owners'  serious 
liability  for  damage  caused  to  third  parties,  as  by  running  into 

o.  7 


98  TllK    COST    OF    SHIP    INSURANCE 

and  perhaps  sinkiii;^  other  \esscls,  possibly  uith  loss  of  life  and 
cargo.  Or  a  pier  or  jetty  may  be  damaged  or  dock  gates  carried 
away,  or  various  other  disasters  may  occur  for  which  the  owners 
may  be  personally  resjjonsible.  This  subject  will  be  more  fully 
treated  presently  (p.  lOO).  Three-fourths  of  the  property-liability 
arising  out  of  damage  to  other  vessels  and  their  cargoes  are 
ordinarily  covered  by  a  clause  specially  added  to  the  marine 
insurance  policy  on  the  ship  insured.  The  one-fuurth  and  the 
life-liabilities  and  the  various  other  risks  are  ordinarily  covered 
in  one  of  the  shipowners'  great  mutual  insurance  associations 
or  Protection  and  Indemnity  Clubs— at  what  cost  it  is  difficult 
to  say. 

As  to  the  cost  of  ordinary  insurance  when  the  owners  run  no 
part  of  the  risk  and  take  on  themselves  no  part  of  the  claim- 
liability,  of  course  it  varies  a  good  deal.  A  by  no  means 
unimportant  factor  in  the  case  is  the  reputation  of  the  owners. 
Some  owners  seem  to  be  the  chronic  victims  of  misfortune,  while 
others  go  year  after  year  without  mishap.  Underwriters  know 
very  well  to  which  class  an  owner  should  be  allocated  and  in 
what  degree.  The  account  of  every  owner  is  kept  separately  in 
the  books  of  the  underwriters  who  insure  their  ships,  the  premiums 
and  salvages  being  placed  on  one  side  of  the  account  and  the 
losses  and  refunds  of  premium  (as,  for  lying-up  in  port,  cancelment, 
and  so  forth)  on  the  other.  At  intervals  or  on  requirement  a 
balance  is  struck  and  the  underwriter  knows  to  a  penny  what 
profit  or  what  loss  the  account  has  on  a  term  of  years  produced. 
He  may  decide  to  put  up  his  premium,  in  which  case  the  skill 
and  blandishments  of  the  owners'  insurance  brokers  will  probably 
be  set  to  work  to  find  a  more  accommodating  market  or  one  with 
less  experience.  Brokers  often  have  desirable  business  to  place, 
and  an  underwriter  in  order  to  get  a  share  of  .some  of  this  may 
be  willing  to  show  an  accommodating  disposition.  On  the  other 
hand,  if  the  account  should  show  a  handsome  profit,  the  owners 
will  be  quite  aware  of  it  and  will  set  themselves  to  obtain  more 
favourable  rates,  and  the  underwriters  may  go  some  way  to 
meet  them  rather  than  lose  a  valuable  account.  Then,  good 
times  and  bad  times  occur.  After  several  years  comparatively 
free  of  disaster  there  is  a  tendency  for  rates  to  be  reduced.     If, 


THE    COST   OF   SHIP    INSURANCE  99 

on  the  contrary,  one  year  of  disaster  has  been  followed  by  another 
or  by  several  others,  the  pendulum  swings  the  other  way,  and 
the  underwriters  may  decide,  if  they  cannot  obtain  improved 
conditions,  to  let  the  business  pass.  There  is  no  absolute  uni- 
formity or  fixity  in  rates.  Steamers  of  regular  lines  running  on 
fixed  routes  are  less  exposed  to  accidents  than  tramps,  because 
the  officers  are,  as  a  rule,  carefully  trained  to  the  route  and  are 
familiar  with  its  special  dangers.  Still,  some  routes  are  more  free 
from  these  than  others.  The  tramp  steamers  form  a  big  class  by 
themselves.  As  a  rule  their  insurance  policy — hull  policies  are 
ordinarily  made  to  cover  a  period  of  twelve  months — gives  them, 
in  most  cases,  free  latitude  as  regards  both  voyage  and  cargo  ;  and 
these  are  sometimes  such  that  if  they  were  treated  as  separate 
risks  they  would  call  for  a  high  premium.  The  underwriters,  how- 
ever, under  a  twelve  months'  policy,  charge  an  inclusive  rate  and 
take  their  chance.  Certain  voyages  or  certain  voyages  at  certain 
seasons  of  the  year,  or  certain  cargoes,  may  be  specially  barred 
by  the  policy,  or  held  covered  at  an  additional  premium  to  be 
paid  for  them  on  occasion  arising.  The  rates  for  a  twelve  months' 
policy  will  vary  therefore  according  to  facts  and  circumstances. 
Perhaps  for  mail  and  passenger  steamers  of  the  highest  class  £^ 
per  cent,  may  be  the  charge,  or  it  may  be  £4  per  cent.,  or  more, 
according  to  the  line  and  voyage.  Ordinarily,  for  tramp  steamers 
the  rate  will  be  ^^5.  Ss.  to  £j.  ys.  per  cent.,  but  in  special  cases 
less  or  more,  perhaps  a  good  deal  more,  may  be  demanded.  Age 
and  character  and  value  of  the  ship  will  of  course  come  into  it.  The 
average  rate  may,  however — subject  to  the  effect  of  good  and  bad 
periods  as  regards  disasters — be  taken,  for  the  sake  of  a  figure, 
at  £6  per  cent.  That  is  to  say,  for  a  tramp  worth  ;^50,ooo,  ;^3000 
a  year.  On  this  the  insurance  brokers,  if  brokers  be  employed, 
will  receive  ;^5  per  cent.,  or  ;^I50,  unless  otherwise  arranged, 
which  the  underwriters  allow  in  account.  On  the  other  hand,  the 
owners  are  by  usage  further  allowed  by  the  underwriters  a  discount 
of  10  per  cent,  on  payment  within  the  customary  short  period. 

Some  owners  insure  their  ships  entirely  in  the  mutual  clubs  or 
associations.  At  the  end  of  the  year,  or  whenever  required,  the 
club  committee  ascertain  what  the  association  has  paid  out  to  the 
members  and  make  a  levy,  based  on  each   member's   tonnage 

7—2 


100  THE   COST   OF   SHIP    INSURANCE 

entered  in  the  association,  to  replace  the  funds.  The  working- 
expenses  of  this  method  of  insuring  are  very  small,  and  of  course 
profit  is  not  aimed  at.  It  is  an  excellent  method  of  insuring 
from  the  point  of  view  of  cost,  but  against  it  is  the  element  of 
uncertainty.  In  a  good  year  the  levy  may  be  small,  but  it  ma)' 
on  occasion  be  otherwise  ;  and  many  owners  would  rather  pay 
a  fixed  sum  at  Lloyd's  or  to  the  Companies  in  advance  and  thus 
know  their  liability  once  for  all.  It  may  be,  too,  in  some  cases 
that  the  owner  of  new  and  well-found  ships  may  prefer  to  have 
them  regarded  on  their  merits,  and  not  brought  in  to  pay  for 
mishaps  to  vessels  which  he  himself  would  place  in  another 
category. 

Shipowners'  Liabilities  for  Collision,  etc. 

By  the  Common  Law,  a  man  is  personally  liable  for  damages 
negligently  caused  by  his  servants  in  the  course  of  their  employ- 
ment. Two  centuries  ago  the  conclusion  was  arrived  at  that 
this  law  called  for  mitigation  in  the  case  of  shipowners,  and  in 
1734  an  Act  was  passed  with  the  following  preamble: 

"  Whereas  it  is  of  the  greatest  consequence  and  importance 
to  this  kingdom  to  promote  the  increase  of  the  number  of  ships 
and  vessels  and  to  prevent  any  discouragement  to  merchants 
and  others  from  being  interested  and  concerned  therein...." 
(Ships  were  in  those  days  part  of  a  merchant's  business  or 
trading  plant :  shipowning  and  trading  were  not  then  separate 
undertakings.)  The  Act  then  proceeded  to  limit  the  ship- 
owner's liability  for  theft  or  embezzlement  by  the  master  or 
crew  to  the  value  of  his  ship  and  her  freight  in  earning.  Pre- 
viously his  liability  was  unlimited.  In  1786  the  Act  was 
extended  to  apply  to  thefts,  etc.,  whether  committed  by  master 
and  crew  or  anybody  else.  Also,  exemption  was  given  for  losses 
caused  by  fire.  Then  in  18 13,  with  the  1734  preamble  repeated, 
damages  or  losses  of  other  kinds  were  brought  in,  and,  notably, 
liability  for  damages  to  another  ship  was  dealt  with,  as  well  as 
damages  to  the  carrying  ship's  own  cargo.  If,  said  the  Act, 
there  was  no  "  personal  fault  or  privity  "  on  the  part  of  the  owner, 
then  if  losses  were  caused  by  the  fault  solely  of  the  owner's 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     lor 

servants,  his  liability  should  be  limited  as  provided  in  the  Act 
of  1734,  i.e.  to  the  value  of  his  ship  and  her  freight  in  course  of 
earning ;  but  each  {e.g.)  collision  to  stand  by  itself  Whether 
the  value  of  the  ship  in  fault  was  to  be  her  value  immediately 
before  the  collision  or  on  her  subsequent  arrival — if  she  did 
arrive — was  not  stated.  Legal  decisions,  however,  declared  in 
favour  of  the  former.  It  will  be  noticed  that  nothing  is  said 
about  loss  of  life.  Such  a  liability  was  only  created,  generally, 
by  Lord  Campbell's  Act — Act  9  &  10  Vic.  c,  93  (1846). 

Then  in  1854  came  the  scissors-and-paste  Merchant  Shipping 
Act,  consolidating  the  various  previous  Acts.  This  important 
Act  (§  504)  brought  in,  however,  life  and  personal  injury  claims. 
Liability  to  be  on  the  previous  basis  as  regards  property,  but 
with  a  special  provision  that  in  the  event  of  loss  of  life  or  personal 
injury  the  value  of  the  ship  and  her  freight  should  not  be  taken 
to  be  less  than  £\z^  per  registered  ton.  But  §  388  relieved 
the  owner  in  toto  if  the  fault  was  solely  that  of  a  compulsory 
pilot.  Lord  Campbell's  Act  had  made  shipowners,  amongst 
others,  liable,  without  limit,  for  death  claims  ;  hence  the  above 
limitation  as  the  result  of  the  shipowners'  representations.  It 
was  the  liability  in  respect  of  their  own  passengers  that  more 
especially  troubled  them.  Still,  why  ^15  as  the  particular 
limit?  It  was,  however,  thought  that  "to  exempt  shipowners 
from  liability  beyond  the  value  of  an  inferior  ship  would  be 
an  encouragement  to  unprincipled  persons  to  employ  worn- 
out  or  inadequately  manned  vessels  in  the  conveyance  of 
passengers",  and  that  a  ;^I5  per  ton  limit  would  mercifully 
remove  any  such  temptation.  Then  came  the  1862  Act,  passed 
as  the  result  of  the  Report  of  a  Royal  Commission  two  years 
earlier.  The  mail  lines  having  ships  worth  a  good  deal  more 
than  the  ;^15  minimum  were  very  unhappy  in  their  minds,  the 
more  so  as  up  to  this  time  there  was  a  belief  that  to  insure 
against  life-claims  was  contrary  to  the  law.  The  appointment 
of  the  Royal  Commission  apparently  arose  out  of  agitation  on  the 
part  of  the  passenger  lines.  §  54  of  the  1862  Act  fixes  ^^15  per 
ton  as  the  limit  for  life-liability,  irrespective  of  the  actual  value 
of  the  ship,  and  £%  for  property  claims,  whether  with  or  without 
loss  of  life:  a  total  maximum  liability  of  £\^.     The  1854  Act 


I02    SHIPOWNERS'  LIABILITIES  EOR  COLLISION 

applied  only  to  British  vessels,  but  the  1862  Act  contained  no 
such  limitation.  The  Act  also  admitted  the  legality  of  insuring 
against  all  the  risks  within  it.  Why  £S  was  fixed  on  as  the 
limit  for  property  claims  is  less  clear.  It  is  generally  supposed, 
however,  that  this  figure  was  taken  as  representing  the  average 
value,  per  ton,  of  British  shipping  collectively.  But  the  mail 
lines  had  been  very  busy  agitating,  and  at  any  rate  this  gave 
them  what  they  wanted,  and  it  at  the  same  time  preserved  an 
appearance  of  impartiality.  We  need  not  follow  the  statutory 
legislation  further,  as  the  various  subsequent  Acts  leave  un- 
touched the  principle  and  limitations  of  the  1862  Act,  namely, 
that  no  shipowner,  British  or  foreign,  if  there  be  no  fault  or 
privity  on  his  own  part,  shall  be  liable 

(1)  For  loss  of  life  or  personal  injury  on  his  own  ship ; 

(2)  For  loss  or  damage  in  the  case  of  goods  or  property  on 
his  own  ship  ; 

(3)  For  loss  of  life  or  personal  injury  on  another  ship  by 
reason  of  improper  navigation  of  his  own  ship  ; 

(4)  For  loss  or  damage  in  the  case  of  another  ship,  or  goods 
or  property  thereon,  by  reason  of  improper  navigation  of  his 
own  ship  ; 

for  more  than  ;^I5  per  ton,  gross  tonnage,  of  his  own  ship,  in 
case  of  loss  of  life  or  personal  injury,  or  for  more  than  ;^8  per 
ton,  whether  there  be  loss  of  life  or  not,  in  case  of  loss  of  or 
damage  to  property.  In  practice,  if  the  life  claims  .should  amount 
to  more  than  £y  per  ton,  the  excess  of  the  £y  will  rank  with 
the  property  claims  against  the  ;^8. 

Now,  as  regards  cases  (i)  and  (2),  claims  arising  on  his  own 
ship,  it  does  not  matter  much  one  way  or  the  other,  because 
every  shipowner  takes  very  good  care  as  regards  (2)  that  his  bill 
of  lading  shall  exempt  him  from  liability  in  respect  of  the  goods 
he  is  carrying;  while  as  regards  (i),  life  claims,  he  similarly 
disclaims  liability  by  his  passenger  contract.  He  is.  in  the  case 
of  cabin  passengers,  undoubtedly  within  his  rights  in  doing  so, 
but  in  that  of  steerage  passengers  a  recent  decision  in  the 
Titanic  case  declared  that,  having  regard  to  special  Board  of 
Trade  provisions,  a  disclaimer  of  life-liability  on  the  back  of  the 
steerage  passenger  contract  was  invalid.    This  decision  has  been 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     103 

affirmed  by  the  Court  of  Appeal.  Seamen  who  suffer  injury  or 
death  arising  out  of  their  employment  are  themselves  or  their 
representatives,  ipso  facto  and  irrespective  of  any  question  of 
negligent  navigation,  entitled  to  the  protection  of  the  Work- 
men's Compensation  Act. 

Of  course,  loss  of  life  or  of  property  may  be  caused  in 
circumstances  other  than  those  arising  out  of  collision  :  as,  for 
example,  the  ship  may  sail  through  a  pier  or  damage  a  jetty, 
or  by  steaming  too  fast  in  narrow  waters  cause  barges  to  break 
adrift,  and  so  on.  Or,  notably,  she  may  cause  loss  or  injury  in 
the  case  of  her  own  cargo  or  passengers  by  negligent  navigation. 
What  we  are  more  especially  considering,  however,  is  the  liability 
for  running  into  another  ship — say  ^8  for  property  and  £'j 
additional  for  life  claims,  in  all  ^15  per  ton  (as  a  maximum) — 
on  the  wrong-doing  vessel's  own  gross  tonnage.  And  this 
;^8  +  £y  liability  is  exactly  the  same  whether  a  mail  and 
passenger  steamer  worth  ^^50  a  ton  be  concerned,  or  an  ancient 
wooden  wind-jammer  worth  30^'.  a  ton  for  Christmas  firing. 
The  consequence  is  that  the  many  owners  of  vessels  worth  less 
than  ;^8  a  ton  are  exceedingly  aggrieved,  while,  till  recently,  the 
owners  of  the  high-valued  vessels  have  remained  modestly  in  the 
background.  Some  ten  years  ago,  however,  a  very  useful  society 
known  as  the  International  Maritime  Committee  was  instituted 
in  Antwerp  with  the  object  of  bringing  about  international 
uniformity  in  matters  of  shipping  law,  on  which  great  divergences 
exist.  In  the  case  of  collision,  for  example,  as  a  general  rule  the 
foreign  law  is  that  there  is  no  personal  liability  at  all,  on  the 
part  of  the  owner  :  his  ship  and  her  freight  only  are  liable.  He 
can  wash  his  hands  of  all  consequences  of  a  collision  by  abandon- 
ing his  ship  to  the  injured  parties.  If  she  is  already  at  the 
bottom  of  the  sea  or  worth  less  than  she  is  liable  for,  her  owner 
will  naturally  abandon  her.  If  worth  more,  then  he  will  keep 
his  ship  and  pay  the  damages.  What  the  International  Maritime 
Committee  are  aiming  at,  as  a  universal  law — and  all  the  British 
shipowners  are  now  supporting  the  proposal — is  an  international 
agreement  under  which  a  shipowner  shall  be  entitled  to  make  his 
choice  whether  to  pay  up  under  the  British  law  or  abandon  his  ship 
under  the  foreign  law.     And  judging  from  the  success  which  has 


104    SHIPOWNERS'  LIABILITIES  FOR  COLLISION 

crowned  the  efforts  of  the  Committee  in  beneficial  directions 
already,  there  seems  fjreat  probabiUty  that  this  will  before  long 
become  a  universal  law  of  the  sea.  Liability  for  loss  of  life,  of 
modern  creation  in  this  countr)-,  is  for  the  most  part  not  at 
present  recognised  abroad.  But  an  international  code  must  be 
expected  to  include  this. 

Let  us,  however,  revert  to  a  consideration  of  our  jCS  +  jCy  =  £i^ 
law  as  it  now  stands.  If  the  Alpha  by  improper  navigation  sinks 
the  Beta  and  her  cargo  (no  lo.ss  of  life)  and  the  Alpha  be  liable 
for  ;^8ooo  (£8  per  ton  on  her,  say,  looo  tons),  if  the  value  of  the 
Beta  and  her  cargo  be  less  than  ;^8ooo,  then  the  Alpha  will  pay 
the  less  amount.  Supposing,  however,  that  it  be  more :  that  it 
be,  say,  ;^  16,000.  In  that  case  the  Alpha  claims  the  protection 
of  the  Act.  She  files  a  suit  of  limitation,  and  unless  personal 
fault  or  privity  can  be  proved  against  her  owners  by  the  Beta — 
which  is  hardly  ever  the  case — then  the  owners  of  the  Alpha, 
having  obtained  a  decree  of  limitation,  will  pay  ;{^8ooo  into  court 
and  leave  it  to  the  Beta's  various  claimants  to  divide  it  />ro  rata 
amongst  themselves.  If  there  be  also  loss  of  life  and  a  ;^I5 
instead  of  an  ;^8  liability,  the  procedure  will  be  similar.  The 
following  case,  which  happens  recently  to  have  been  reported  in 
the  Press,  will  serve  to  illustrate  the  actual  procedure : 

Probate,  Divorck,  and  Admiralty  Division 

Limitation  of  Liability 

The  Rijnstroom 

This  was  a  limitation  action  in  which  the  plaintiffs,  the  Hollandsche 
Stoomboot  Maatschappij,  the  owners  of  the  steamship  Rijnstroom,  sought  to 
limit  their  liability  to  an  amount  not  exceeding  ^8  per  ton  on  796.15  tons, 
the  registered  tonnage  of  the  Rijnstroom,  ascertained  in  accordance  with  the 
provisions  of  the  Merchant  Shipping  Acts,  for  the  damages  arising  out  of 
a  collision  with  the  defendants'  steamship  Glenroy,  which  took  place  in  the 
Humber  on  November  2  last. 

An  action  was  instituted  in  this  Court  on  behalf  of  the  owners  of  the 
Glenroy  against  the  owners  of  the  Rijnstroom,  and  on  December  14  the 
Rijnstroom  was  held  alone  to  blame. 

Her  owners  now  claimed  a  declaration  that  on  payment  of  the  sum  of 
^6369.  4J.,  being  the  amount  of  their  liability  ascertained  as  aforesaid, 
together  with  interest  thereon,  into  Court,  all  further  proceedings  should  be 
stayed. 

His  Lordship  pronounced  for  the  declaration  as  prayed. 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     105 

Railway  companies  carrying  on  a  conjoint  land  and  sea  service 
are,  for  the  purposes  of  the  latter,  ordinarily  entitled  to  the 
protection  of  the  Act,  though  in  a  particular  case  special  con- 
tractual conditions  or  some  special  Act  of  Parliament  may 
possibly  intervene.  Broadly  stated,  however,  a  railway  com- 
pany carrying  passengers  in  part  by  land  and  in  part  by  sea, 
either  in  its  own  or,  apparently,  in  hired  vessels,  is  entitled  to 
claim  the  ^15  per  ton  limitation — is  entitled  to  be  put,  in  short, 
for  the  purposes  of  the  sea  part  of  its  contract,  on  the  footing  of 
a  shipowner.  Thus  in  the  case  of  the  loss  of  a  railway  steamer, 
as  the  result  of  negligent  or  improper  navigation,  with  great  loss 
of  life,  claim  after  claim  may  be  prosecuted  against  the  railway 
company,  with  judgment  against  the  company  in  each  case,  the 
total  amounting  perhaps  to  a  very  large  sum.  But  the  railway 
company,  as  shipowners,  are  not  affected  after  their  ^15  limit  has 
been  reached. 

When  in  a  particular  case  the  total  claims  exceed  the  total 
of  the  wrong-doing  vessel's  liability  a  public  notice  is  issued. 
Thus  : 

Notice  to  appear 

In  the  High  Court  of  Justice,  Probate,  Divorce,  and 
Admiralty  Division.     (Admiralty.) 

Ships  "  Cormvood  "  and  "  Rouen  " 

Whereas  in  an  Action  of  Limitation  of  Liability  instituted 
in  the  High  Court  of  Justice  on  behalf  of  William  France 
Fenwick  and  Company,  Limited,  the  Owners  of  the  Steamship 
"  Cornwood  "  against  Furness,  Withy,  and  Company,  the  Owners 
of  the  Steamship  "  Rouen  "  and  all  others  claiming  in  respect  of 
damage  or  loss  arising  out  of  the  alleged  negligent  navigation 
of  the  "  Cornwood  "  on  the  occasion  of  a  collision  between  the 
said  s.s.  "  Rouen  "  and  the  s.s.  "  Cornwood,"  the  Judge  of  the 
Admiralty  Division  of  the  said  High  Court  did  on  the  14th  July, 
191 3,  amongst  other  things  pronounce  that  in  respect  of  loss  or 
damage  to  Ships,  Goods,  Merchandise,  or  other  things  caused  by 
reason  of  the  improper  navigation  of  the  steamship  "Cornwood" 
on   the  occasion  of  the  collision  between  that  vessel  and  the 


io6    SHIPOWNERS'  LIABILTTIKS  FOR  COLLISION 

steamship  "Rouen"  on  the  4th  day  of  October,  1911,  the  Owners 
of  the  said  steamship  "Cornwood"  are  answerable  in  Damages 
to  an  amount  not  exceeding  /^i 5,988.  i  i.y.  3^^.  (such  sum  being 
at  the  rate  of  £^  for  each  ton  of  the  registered  tonnage  of  the 
said  s.s.  "  Cornwood  "  with  the  addition  of  engine-room  space). 

Ihis  is  therefore  to  give  notice  to  all  Pp:kson.s  having  any 
CLAIM  in  respect  of  the  LO.SS  or  DAMA(iK  caused  as  aforesaid 
that  if  they  do  not  come  in  and  enter  their  Claims  on  or  before 
the  1st  day  of  October,  191 3,  they  will  be  excluded  from  sharing 
in  the  aforesaid  amount. 

Dated  the  14th  day  of  July,  191 3. 

The  liabilities  of  shipowners  for  damages  to  third  parties  are, 
as  already  stated,  not  limited  to  the  consequences  of  collision 
with  another  ship  or  vessel,  and  they  may,  on  occasion,  be  serious. 
The  shipowners  protect  themselves,  ordinarily,  in  respect  both  of 
collision  and  of  other  liabilities.  Against  the  latter  they  can  pro- 
vide by  entering  their  ship  in  a  Mutual  Insurance  or  Protection  and 
Indemnity  Club;  and  one-fourth  of  the  collision  liability  as  regards 
property  is  similarly  placed,  and  ordinarily  the  whole  of  the 
life-claims  liability.  There  remains  the  three-fourths  liability  for 
damages  payable  to  another  ship  or  vessel  or  to  the  owners  of 
property  on  board.  This  three-fourths  liability  is  covered  with 
the  underwriters  who  insure  the  ship  herself  against  loss  or 
damage  resulting  from  perils  of  the  seas.  (The  risk  of  collision- 
damage  to  the  ship  insured  is  of  course  a  peril  of  the  seas.) 
Protection  for  the  three-fourths  property-liabilities  to  third  parties 
— i.e.  parties  concerned  in  the  ship  run  into — is  given  by  a  special 
clause  attached  and  supplemental  to  the  policy  on  the  ship 
insured.  This  clause  is  known  as  the  "  Running  Down  Clause  ", 
or,  conventionally,  as  the  "R.D.C."  In  very  exceptional  cases 
life-claims  or  possibly  four-fourths  of  the  property-liability  may 
be  covered  also,  but  the  general  practice  is  as  above  stated. 

Under  the  existing  law,  to  be  altered,  however,  on  i  January 
1918  as  already  explained \  shipowners  are  not  liable  for  collision 
damages  which  are  solely  attributable  to  the  act  or  default  of 
their  compulsory  pilot. 

'   Vide  p.    34. 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     107 

We  have  been  considering  the  case  of  collision  between 
merchant  vessels  ;  but  suppose  a  merchant  ship  runs  into  a  ship- 
of-war  or  a  ship-of-war  into  a  merchant  ship  ?  The  first  case  is 
simple  enough  :  the  owners  are  liable  for  collision  with  "another" 
ship  or  vessel,  and  whether  their  ship  runs  into  a  merchant  vessel 
or  into  a  ship-of-war  is  all  one. 

But  suppose  the  ship-of-war  runs  into  a  merchant  vessel,  how 
then?  In  the  summer  naval  manoeuvres  of  1896  a  notable  case 
of  the  kind  did,  in  fact,  occur.  The  writer  set  forth  the  circum- 
stances and  the  law  of  the  case  in  an  article  in  the  Economist  of 
12  September  in  that  year,  and  with  the  kind  permission  of  the 
editor  it  is  here  reproduced  : 

The  Sinking  of  the  Merchant  Ship  Siren  by 
H.M.S.  Landrail 

"The  ramming  and  sinking  of  the  Siren  by  H.M.S.  Landrail 
as  an  incident  of  the  recent  naval  manoeuvres  serves  as  a  useful, 
but  far  from  comfortable,  object-lesson  in  shipping  circles.  The 
facts  are  not  in  dispute.  The  Siren,  a  large  four-masted  iron 
vessel,  cram  full  of  wool  and  tallow  from  Sydney,  was,  on  a  clear 
night,  about  thirty  miles  from  Portland,  when  the  Landrail,  a 
small  gunboat,  whose  lights  had  been  seen  for  some  time  previously, 
ran  into  her.  The  collision  was  at  the  moment  believed  to  be  of 
a  trifling  character,  and  no  doubt  such  would  have  been  the  case 
had  the  Landrail  been  a  merchant  vessel.  As  it  was,  her  ram' 
pierced  the  merchantman  below  water,  and  promptly  sank  her. 
It  is  understood  that  the  gunboat  sustained  no  damage  whatever, 
except  to  her  ram,  which  had  to  be  replaced.  At  the  naval 
inquiry,  the  lieutenant  in  charge  admitted  the  facts,  and  took  the 
blame  upon  himself.  How  such  a  catastrophe — accident  we 
cannot  call  it — was  brought  about  is  a  question  not  necessary 
now  to  be  discussed,  and,  for  our  part,  we  prefer  not  to  discuss 
it.  Sufficient  to  say  that  when  the  waters  of  the  Channel  closed 
over  the  Siren,  they  closed  for  good  and  all  over  property  worth, 
it  is  said,  very  little,  if  at  all,  short  of  ;i^  100,000.  As  to  the 
crew,  they  .saved  themselves,  by  good  fortune,  in  their  own  boats. 

^  Apparently  this  is  incorrect,  the  vessel  having  no  ram. 


loS    SHIPOWNERS'  LIABILITIES  FOR  COLLISION 

"  Now,  if  there  had  liccn  any  room  for  doubt  as  to  the  blame 
for  the  collision,  the  course  for  those  concerned  in  the  Siren 
would  have  been  to  brinj^  an  action,  jjreferably  in  the  Aflmiralt)- 
Court,  against  the  individual  presumably  responsible  for  it :  the 
commander,  the  officer-in-charge,  the  helmsman,  or  whoever  it 
mii^ht  be.  And  in  such  case  the  Lords  of  the  Admiralty  would 
doubtless,  in  accordance  with  their  usaf^e,  have  put  in  an  appear- 
ance on  behalf  of  the  individual  sued,  though  without  any  legal 
obligation  so  to  do.  F'or,  as  the  law  stands  at  present,  the 
national  (public)  vessels  may  blow  up  or  run  down  the  national 
private  vessels  to  any  extent  without  involving  the  Crown  or  the 
Lords  Commissioners  in  a  penny  of  liability.  The  onl)'  person 
technically  responsible  is  the  immediate  wrongdoer.  On  the 
homely  principle  of  who  breaks  pays,  the  wrongdoer  is  liable  in 
full.  That  is  to  say,  in  the  present  case  the  lieutenant  in  charge 
is  liable  for  ;{^  100,000,  or  thereabouts. 

[/fere  zvas  ijiterposed  sovie  of  the  Jiistorical  matter  already 
quoted^ 

"  To  go  back.  Were  the  pecuniary  position  of  the  lieutenant 
of  the  Landrail  equal  to  a  payment  of  ;^  100,000,  the  Lords 
Commissioners  would  prima  facie  either  have  to  pay  the  full 
amount  for  him,  or  .see  their  officer  ruined.  As,  on  the  facts,  it 
would  be  a  farce  to  sue  for  a  judgment  for  ;f  100,000  against  a 
lad  blessed  presumably  with  not  100,000  pence,  the  owners  of 
the  Siren,  as  we  understand,  applied  direct  to  the  Lords  of  the 
Admiralty  for  compensation  for  loss  of  their  ship,  freight,  and 
cargo,  as  well  as  of  the  crew's  effects.  Their  Lordships  replied 
that  they  were  liable  for  nothing,  but  were  willing,  as  an  act  of 
grace,  to  pay  what  the  Landrail  would  have  been  liable  for  had 
she  been  a  merchant  vessel,  though  merchant  vessels,  it  may  be 
parenthetically  observed,  do  not  go  about  armed  with  a  deadly 
ram.  Seeing  that  war  vessels  are  not  measured  as  merchant 
vessels,  the  amount  of  this  liability  cannot  be  ascertained,  but  it 
is  generalh'  supposed,  in  the  Landrail's  case,  to  represent  an 
amount  equal  to  .some  petty  percentage — 3  per  cent.,  or  there- 
abouts— on  the  i^  100,000  lost.  So  that,  for  example,  if  the 
carpenter  of  the  Siren — we  presume  she  carried  a  carpenter — lost, 
say,  ;^30,  the  value  of  his  tools  and  effects,  he  would   receive 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     109 

about  twenty  shillings  by  way  of  compensation,  and  this  not  till 
the  costly  and  wearisome  process  of  proving  all  the  claims  had 
been  dragged  to  a  tardy  conclusion.  Now,  whatever  may  be  the 
strict  legal  position,  for  a  war-ship  paid  for  out  of  the  public 
pocket  negligently  to  ram  and  sink  a  merchant  vessel,  and  for 
the  Lords  of  the  Admiralty  to  refuse  to  the  destitute  seamen  for 
the  loss  of  their  effects  any  compensation  worthy  of  the  name, 
seems  scarcely  a  proceeding  likely  to  commend  itself  either  to 
the  Sovereign  who  by  a  graceful  tradition  is  regarded  as  owner 
of  the  war-ship,  or  to  the  nation  who  pay  for  it.  And,  indeed,  it 
has  always  appeared  to  us  that  the  unhappy  seamen  rendered 
destitute  by  a  collision  should  in  all  cases  be  compensated 
promptly  and  in  full  by  the  owners  of  the  vessel  to  blame  for  the 
collision  :  that  is  to  say,  that  their  claims  for  the  loss  of  clothing, 
tools,  and  effects  should,  by  law,  be  given  precedence  over  mere 
mercantile  claims  on  the  part  of  the  owners  of  the  property  sunk 
by  the  collision.  As  a  matter  of  compassionate  fact,  these  latter 
claimants  do,  we  believe,  sometimes  allow  such  precedence  to  be 
taken  as  against  themselves.  We  find  it  difficult  to  believe, 
however,  that  it  could  ever  have  been  contemplated  or  intended, 
in  an  Act  which  sprang  from  the  national  desire  to  '  prevent  dis- 
couragement to  merchants  and  others  from  being  interested  in 
shipping ',  that  the  sailormen's  claims  for  clothes  and  tools  should 
have  no  favour  shown  to  them. 

"  The  Merchant  Shipping  Act  is,  however,  in  the  present  case 
entirely  outside  the  question.  So  far  as  the  liability  for  negligent 
navigation  is  concerned,  the  Act  was  passed  in  order  to  afford 
protection  to  shipowners  against  the  full  consequences  of  negli- 
gence on  the  part  of  their  servants.  With  Her  Majesty's  ships 
it  has  nothing  to  do,  and  says  so  in  plain  terms.  So  that  the 
Lords  of  the  Admiralty,  in  seeking  to  shelter  themselves  behind 
this  Act,  are,  it  is  urged,  not  only  adopting  an  arbitrary  course 
for  which  there  is  no  legal  justification,  but  are  actually  using  as 
an  instrument  of  oppression  an  Act  based  on  an  original  desire 
to  stimulate  and  encourage  British  shipping.  True,  they  are  not 
technically  liable  for  anything  at  all,  but  against  such  a  techni- 
cality— to-day,  apparently,  somewhat  of  an  anachronism — is  first 
the  fact  that  it  has  long  or  always  been  the  usage  of  the  Lords 


no    SHIPOWNERS'  LIAHILITIKS  FOR  COLLISION 

Commissioners  tn  stand  behind  their  officer  in  such  a  case,  and 
next,  the  circumstance  that  their  offer  to  pay  somethinj^^  certainly 
impUes  an  admission  of  moral  or  equitable  responsibility.  '  When- 
ever it  hapjjens,'  says  Justice  Blackstone  in  his  Commentaries — 
and  his  words  in  the  leading  case  of  the  troopship  Athol  (1842) 
were  quoted  with  approval  by  the  Queen's  Advocate — '  Whenever 
it  happens  that  by  misinformation  or  inadvertence  the  Crown 
hath  been  induced  to  invade  the  private  rights  of  any  of  its 
subjects,  though  no  action  will  lie  against  the  Sovereign  (for  who 
shall  command  the  King  ?)  yet  the  law  hath  furnished  the  subject 
with  a  decent  and  respectful  mode  of  removing  that  invasion,  by 
informing  the  King  of  the  true  state  of  the  matter  in  dispute  ; 
and  as  it  presumes  that  to  know  of  an  injury  and  to  redress  it  are 
inseparable  in  the  royal  breast,  it  then  issues  as  of  course,  in  the 
King's  own  name,  his  orders  to  his  judges  to  do  justice  to  the 
party  aggrieved.'  And  whether  this  expression  of  constitutional 
law  is  to  be  understood  as  applying  to  breach  of  contract,  or  to 
tort,  it  is  probably  on  an  inner  consciousness  of  its  inherent 
justice  that  the  Lords  Commissioners,  whilst  repudiating  any 
liability  whatever,  have  at  the  same  time  expressed  their  willing- 
ness to  pay  a  trifle  towards  the  heavy  losses  so  unaccountably 
caused  by  H.M.S.  Landrail. 

"  The  shipping  community  is  nothing  if  not  patriotic,  and  their 
enthusiasm  for  the  naval  manoeuvres  will  no  doubt  carry  them 
far.  Whether,  however,  it  will  incline  them,  in  order  that  they 
may  save  the  pockets  of  the  national  taxpayers,  to  take  unmur- 
muring upon  themselves  losses  inflicted  on  them  by  the  national 
vessels,  practising  for  the  national  defence,  is  a  question  which 
they  may  be  trusted  to  consider  for  themselves.  And  seeing 
that  the  manoeuvres  are  now  an  annual  event,  and  that  one  of 
their  pleasing  incidents  is  the  racing  of  torpedo  and  other 
warcraft,  large  and  small,  in  crowded  waters  at  night  and  with- 
out lights,  the  consideration  should  be  not  altogether  devoid  of 
interest." 

And  now  for  the  conclusion  of  the  case.  The  Government, 
having  no  defence  as  regards  the  collision,  offered  and  sent  to 
the  owners  a   warrant   for   ;^4843   on   the   £8   basis,   the   losses 


SHIPOWNERS'  LIABILITIES  FOR  COLLISION     iii 

amounting,  in  fact,  to  about  iJ^90,ooo.  The  owners,  after  consulting 
with  a  committee  of  all  the  underwriters  concerned,  returned  the 
warrant  and  requested  payment  in  full.  Whereupon  the  Govern- 
ment offer  was  withdrawn.  In  Parliament,  if  memory  may  be 
trusted,  the  Government  were  asked  at  any  rate  to  pay  the 
unhappy  crew  in  full :  lOO  per  cent,  as  against  5  per  cent.  Govern- 
ment refused.  On  this,  a  considerable  stir  seemed  imminent,  and 
the  Government,  rather,  perhaps,  than  "  face  the  music  "  of  the 
Labour  Press,  decided,  as  an  act  of  generosity,  to  pay  the  crew  in 
full.  Meantime  the  underwriters  and  a  committee  of  the  Chamber 
of  Shipping  had  come  together,  and  it  was  decided  to  press  the 
underwriters'  claims  by  means  of  an  influential  deputation  to  the 
Board  of  Trade.  Unfortunately,  this  fell  through.  Shipowners 
generally  were  then  apparently  seeking  some  concession  from 
the  Government  and  it  was  considered  inopportune  to  raise  the 
question  at  such  a  juncture.  The  Government  offer,  however,  had 
been  withdrawn,  and  the  question  was  now  no  longer  one 
of  getting  5  per  cent,  or  ICK)  per  cent.,  but  of  getting  nothing 
at  all  or  5  per  cent.  But  if  the  Government  had  adhered  to  their 
withdrawal,  the  underwriters  might  either  have  presented  a 
Petition  to  the  Crown  or  have  had  all  the  facts  out  in  bankruptcy 
proceedings  against  the  unhappy  lieutenant.  Anyhow,  the 
Government  magnanimously  withdrew  their  withdrawal  and  paid 
over  the  5  per  cent.  And  thus  the  shipowners  and  the  under- 
writers missed  an  opportunity  to  get  decided  a  point  of  no  small 
interest  and  importance,  and  with  at  least  a  "  sporting  "  prospect 
of  success  and  very  little  to  lose  in  the  event  of  failure. 


CHAPTER  III 
Lloyd's 

To  write  on  ocean  commerce  and  shipping  and  leave  out 
Lloyd's  would  be  like  writing  on  the  country's  industrial  develop- 
ments, leaving  out  the  railways.  It  is  the  possibilities  of  insurance 
which  have  done  so  much  to  make  ocean  commerce  what  it  is  : 
and  who  can  think  of  marine  insurance  without  Lloyd's  coming 
immediately  to  his  mind  ?  And  who,  who  knows  anything  of 
the  subject,  can  think  of  the  safety  of  modern  shipping  without 
at  once  giving  credit  to  that  wonderful  and  beneficent  institution 
Lloyd's  Register?  But  to  many  if  not  most  people,  to  think  of 
Lloyd's  is  to  include  Lloyd's  Register ;  to  regard  the  two  bodies, 
in  fact,  as  practically  if  not  actually  identical.  In  ancient  times, 
it  is  true,  so  far  as  any  system  of  shipping  record  or  classification 
existed  at  all,  it  was  to  be  credited  solely  to  the  merchant-under- 
writers of  the  ancient  coffee-house.  So  important,  however,  grew 
the  system  as  an  adjunct  to  marine  insurance  that  long  ago  it 
came  to  be  carried  on  by  an  independent  body  as  a  thing  entirely 
apart.  Lloyd's — that  is,  the  Corporation  of  Lloyd'.s — and  Lloyd's 
Register — that  is,  the  Society  of  Lloyd's  Register — are,  in  fact, 
two  bodies  entirely  separate  and  distinct,  and  with  premises  now, 
as  distance  counts  in  the  City,  a  long  way  apart. 

Marine  insurance  was,  as  all  the  world  believes,  introduced 
into  England  by  the  Lombards  driven  out  of  Italy  as  the  result 
of  conflicts  miscalled  religious,  and  of  other  causes.  They  settled 
in  England,  and  brought  their  money  and  their  business  instincts 
with  them.  Notably  they  established  themselves  in  London  on 
a  marshy  piece  of  ground  in  the  City,  which  has  ever  since  been 
known  as  Lombard  Street.  They  spread  to  other  ports,  both 
near  and  far.  Lombard  Street,  for  instance,  on  the  low  ground 
near  the   Eloating   Bridge  at    Portsmouth   is    presumably  thus 


LLOYD'S  113 

explained.  The  foreigners  were  able  and  prosperous,  and  excited 
jealousy  accordingly,  and  at  the  beginning  of  the  i6th  century 
they  had  nearly  disappeared.  So  great  a  reputation  had  they 
made  for  themselves  in  the  matter  of  marine  insurance,  however, 
that  to  this  day  Lloyd's  policy  concludes  with  the  following 
words :  "  And  it  is  agreed  by  us  the  Insurers,  that  this  Writing 
or  Policy  of  Assurance  shall  be  of  as  much  Force  and  Effect  as 
the  Surest  Writing  or  Policy  of  Assurance  heretofore  made  in 
Lombard  Street,  or  in  the  Royal Exchmige,  or  elsewhere  in  London." 
And  it  is  believed  that  the  wording  of  the  policy  in  use  at  this 
very  day  is  identically  that  introduced  and  used  by  the  Lombards. 
As  in  the  case  of  the  bill  of  lading,  its  wording  became  sacrosanct ; 
and  indeed  when  once  commercial  wording  has  become  stereo- 
typed, as  well,  perhaps,  as  interpreted  here  and  there  by  legal 
judgments,  it  may  be  dangerous  even  by  a  word  to  alter  it. 

For  a  long  time,  however,  the  great  wealthy  merchants,  the 
merchant  princes  of  those  days,  looked  down  upon  the  trader 
whose  business  resources  were  not  such  as  to  enable  him  to  incur 
unaided  the  perils  of  the  seas.  But  this  of  course  was  no  reason 
why  the  merchant  princes  should  not  profit  by  the  fact,  and  they 
competed  with  the  Lombards  for  the  insurance  business.  When 
they  and  the  money-lenders  and  others  had  succeeded  in  driving 
out  the  Lombards  they  had  it  all  their  own  way. 

In  those  days  the  great  merchant  traders  owned  their  own 
ships,  in  which  they  shipped  their  own  goods,  as  well  as,  for 
a  freight  consideration,  the  goods  of  other  traders  so  far  as  there 
was  room  in  the  hold.  It  was  long  before  the  days  of  docks,  and 
their  ships  used  to  He  in  the  river  off  the  Tower,  or  thereabouts. 
In  Tower  Street  was  an  eating-house  belonging  to  one  Edward 
Lloyd.  As  the  then  new  and  always  fragrant  beverage  coffee  was 
to  be  obtained  there,  the  establishment  was  known,  as  were  at  that 
time  and  later  many  others  in  the  City,  as  a  "  Coffee-house 
Lloyd's  Coffee-house.  Lloyd's  Coffee-house  became  the  favourite 
resort  of  the  captains  of  the  ships  lying  hard  by,  and  the  merchant 
owners  of  the  ships  made  a  sort  of  dining  or  coffee-drinking 
business  club  of  it.  These  merchants,  as  underwriters,  no  doubt 
picked  up  many  a  useful  hint  from  their  own  and  other  captains, 
and  laid  themselves  out  to  get  insurances  accordingly.  Traders 
o.  8 


114  LLOYDS 

who  wanted  to  insure  their  ^oods  had  only  to  <^o  to  Lloyd's 
Coffee-house  at  a  certain  hour  and  they  could  be  sure  of  a  choice 
of  underwriters.  To  ha\  e  the  |)atrona<^e  of  the  captains  and  the 
merchant  shipowners  and  the  traders  who  came  to  see  the  under- 
writers, was  a  fine  thint^  for  Lloyd,  and  he  rose  to  the  occasion. 
In  1696  he  started  a  shipping  paper  for  the  use  of  his  clients — 
"  Lloyd's  News."  Soon  afterwards  he  fell  out  with  the  Govern- 
ment, and  ceased  his  publication.  In  1726,  however,  he  brought 
it  out  once  more  under  the  name  of  "  Lloyd's  List  ",  a  publication 
which  has  ever  since  continued.  Towards  1691  Lloyd  moved 
his  coffee-house  nearer  to  Lombard  Street,  the  classic  home  of  the 
first  insurers,  and,  consequently,  nearer  to  the  Royal  Exchange,  at 
the  very  centre  of  the  City.  Possibly  his  patrons  found  that  the 
distance  to  Tower  Street  inclined  traders  to  insure  with  rivals 
nearer  by.  Anyhow,  Lloyd  and  his  coffee-house  came  close  to 
Lombard  Street,  and,  the  underwriting  enterprise  having  increased 
in  importance,  its  practitioners  at  the  coffee-house  formed  them- 
selves into  an  association.  In  1774  the  association  of  "Lloyd's 
underwriters  "  took  up  its  business  quarters  on  the  first  floor  of 
the  Royal  Exchange,  where  they  remained  till  1838,  when  the 
Exchange  was  destroyed  by  fire.  First,  then,  the  coffee-house 
kept  by  Lloyd  gave  a  collective  name  to  its  underwriting 
frequenters,  then  the  frequenters  gave  to  their  new  quarters  the 
name  which  the  coffee-house  had  given  them.  And  such  is  the 
honour  and  prestige  conferred  upon  the  name  by  the  operations 
and  the  methods  of  Lloyd's  underwriters  that  it  has  in  various 
instances  been  adopted,  as  a  claim  to  public  confidence,  by 
insurance  bodies  and,  somewhat  curiously,  by  shipping  companies, 
in  foreign  lands,  as  part  of  their  own  title — and  also,  indeed,  by 
enterprises  having  no  connexion  with  the  sea  or  ships  at  all. 

On  the  rebuilding  of  the  Royal  Exchange,  Lloyd's  took  a  long 
lease  of  a  large  portion  of  the  first  floor,  and  these  premises  are 
still  known  to  the  Jiabituh  as  "  The  Room",  though  it  has  ceased 
to  be  a  coffee-room.  None  the  less,  it  is  arranged  as  if  it  were 
the  ancient  eating-house,  with  rows  of  mahogany  tables  at  which 
the  busy  underwriters  sit  vis-a-vis,  divided  from  the  tables  back 
and  front  by  the  conventional  partitions,  against  which  the 
underwriters,  coffee-house  fashion,  are  seated  back  to  back.     On 


LLOYD'S  115 

the  tables,  however,  in  place  of  the  steaming  joint  or  fragrant 
coffee  served  by  Edward  Lloyd,  are  now  displayed  scattered 
registers,  Lloyd's  Lists  and  the  underwriting  books. 

In  1 87 1  Lloyd's  were  "incorporated",  with  certain  rights  and 
privileges,  notable  amongst  these  being  the  protection  of  wrecks 
and  the  collection  and  distribution  of  shipping  news.  The  two 
great  and  quite  distinct  functions  of  Lloyd's  are  the  effecting  of 
insurances  and  the  collection  and  distribution  of  shipping  news. 


Lloyd's  as  a  News  Centre:   Lloyd's  Agents 

Practically  at  every  port,  certainly  at  every  notable  port,  in 
the  world,  Lloyd's  have  an  Agent :  a  shipping  firm,  a  banker, 
a  Consul  or  whoever  it  may  be.  It  is  an  honourable  appointment, 
and  the  fact,  apart  from  its  emoluments,  makes  the  competition 
for  it  keen.  A  special  "  Agency  Committee  "  has  this  branch  in 
hand,  the  great  insurance  companies  being  represented  on  the 
committee.  There  are,  in  all,  some  1400  agents,  and,  among  so 
large  a  number,  vacancies,  by  death  or  otherwise,  must  needs  from 
time  to  time  occur.  But  whenever  possible  the  committee  appoints, 
to  fill  a  vacancy,  some  one  whose  connexion  with  the  former 
agents,  if  he  has  discharged  his  duties  well  and  faithfully,  gives 
him  a  claim  on  the  sympathies  of  the  committee.  Lloyd's  are, 
in  fact,  extraordinarily  loyal  to  their  o'd  agents.  Every  agent  is 
equipped  with  a  copy  of  Lloyd's  cable  code,  by  which  in  a  few 
cipher  words  he  can  cable  detailed  news  of  casualties,  salvages 
and  so  forth.  Arrivals  and  departures  are  similarly  cabled,  hour 
by  hour,  and  cable  messages  of  news  good  and  bad  pour  in  to 
Lloyd's  unceasingly  from  far  and  wide.  This  news  is  immediately 
passed  on  to  the  companies  subscribing  (in  a  large  sum)  to  "  The 
Room  "  and  is,  so  far  as  necessary,  also  sent  to  the  daily  Press. 
Each  cablegram  is  copied  out  on  a  "  flimsy "  as  it  arrives  and 
displayed  in  its  allotted  place  on  the  walls — casualties,  arrivals 
and  departures  all  in  their  own  place  and  in  a  separate  colour. 
The  agents  also  post  home  the  local  shipping  prints,  and  these 
are  separately  filed. 


Ii6  LLOYD'S 


The  Indexes 


Every  day's  news  is  printed  in  Lloyd's  List,  and  a  staff  of 
clerks,  with  coloured  inks,  is  engaged  in  posting  into  many  huge 
indexes,  displayed  on  stands,  the  information  so  provided.  At 
a  moment  therefore  any  underwriter  or  subscriber  can  turn  up 
a  ship's  name  in  the  index  and  find  against  it  a  reference  to  every 
mention  of  the  vessel  which  has  appeared  in  Lloyd's  List  from 
I  January  until  that  very  morning,  the  arrivals,  departures  and 
casualties  each  identifiable  by  a  separate  colour. 

Lloyd's  as  an  Insurance  Centre 

And  first,  let  it  be  clearly  understood  that  Lloyd's,  as  such,  is 
not  an  insurance  body  :  it  is  a  room  full  of  individuals  each  of 
whom,  for  insurance  purposes,  is  a  separate  entity.  The  in- 
dividual members  of  Lloyd's  are  no  more  collectively  engaged  or 
concerned  than  are,  in  their  buying  and  selling,  the  several 
members  of  the  Stock  Exchange.  There  is  no  "  solidarity " 
amongst  them.  A  score  of  underwriters  may  sign  the  same 
policy,  but  each  does  so  for  himself  only,  and  only  for  the  amount 
written  against  his  signature.  In  the  case  supposed,  the  legal 
position  is  just  the  same  as  if  twenty  separate  policies  had  been 
"  subscribed "  or  "  underwritten."  The  amount  accepted  by 
each  underwriter  is  shown  separately  on  the  policy,  with  his 
name  against  it.  In  the  days  of  ancient  devoutness  or,  it  may 
be,  superstition,  each  underwriter  severally  declared  himself 
"content  with  this  assurance  which  God  preserve  for  one  hundred 
pounds  this  (date)." 

Seated  at  the  separate  tables  already  mentioned  are  in  all 
some  1 50  underwriters,  more  or  less.  Nearly  all  of  these,  however, 
are  empowered  to  sign  for  other  "Names",  some  of  whom  possibly 
may  never  have  even  been  inside  "  The  Room  "  and  who  might 
not  know  a  policy  if  they  saw  it.  Any  responsible  person 
may  become  a  "  Name  "  who  is  approved  by  Lloyd's  committee. 
He  has,  however,  to  deposit  with  the  committee  some  such  sum 
as  ;^5000  or  £yooo,  and  to  give  such  other  guarantees,  if  any,  as 
may  be  required.    This  deposit  is  merely  precautionary  against  the 


l'"n)m  the  IlltistraU'd  London  N^tnvs 


Lloyd's.     An  important  announcement  is  preceded  by  the  sounding 
of  the  "  Lutine"  bell 


LLOYD'S  117 

possible  contingency  of  losses  not  otherwise  provided  for.  There 
are  about  five  times  as  many  "Names"  as  underwriters.  An 
alphabetical  list  of  them  is  printed  in  the  Appendix  to  Lloyd's 
Register.  The  would-be  "  Name  ",  before  being  thus  admitted, 
will,  of  course,  have  made  arrangements  with  a  certain  underwriter 
to  "  write  "  for  him.  For  this  he  will  pay  a  fixed  annual  salary 
or  fee  to  the  underwriter,  and  in  addition  a  commission  on  any 
profits.  Some  underwriters,  in  addition  to  insuring  in  their  own 
name,  write  for  two  or  three  others — some,  possibly,  for  as  many 
as  a  score.  Such  great  underwriting  syndicates  are  almost 
equivalent  to  an  insurance  company  in  themselves. 

The  Process  of  Insuring 

Between  the  rows  of  tables  are  long  gangways.  An  insurance 
broker  having  a  risk  to  place  will  first  of  all  write  out  the  stereo- 
typed particulars  on  a  strip  of  paper  of  a  standard  size  known  as 
the  "slip."  Passing  down  the  gangway — which,  at  times,  is 
densely  crowded — he  places  his  slip  before  an  underwriter.  The 
underwriter  may  know  all  about  it  at  a  glance.  On  the  other 
hand  he  may  want  to  be  informed  as  regards  the  ship.  In  such 
case  he  turns  to  Lloyd's  Register  or  "  The  Book  "  at  his  elbow 
and  satisfies  himself  Or  he  may  want  to  know  what  Lloyd's 
"Weekly  Index  "(a  printed  publication  of  each  week's  news  of 
every  vessel)  has  to  tell  him  about  the  movements  of  the  v^essel. 
Being  satisfied  on  both  points  and  approving  the  rate  of  premium, 
which  for  most  cases  is  pretty  well  stereotyped,  he  writes  his 
initials  on  the  slip,  and  the  amount,  if  the  total  offered  is  large, 
which  he  accepts.  If  he  writes  for  five  names  besides  his  own  he 
may  probably  sign  for  i^6oo — i^ioo  for  each  name:  for  "  rough  " 
business — e.g.  timber  on  deck — ;^50  may  be  enough  :  for  bonds 
or  specie  (by  a  mail  steamer),  ;^500  or  possibly  ;^iooo.  If  the  slip 
is  for  a  very  large  amount,  the  broker,  having  finished  with 
Lloyd's,  may  then  go  round  to  the  companies  at  their  offices,  to 
complete.  Or  he  may  have  two  slips,  and  "  shew "  one  to  the 
companies  and  the  other  at  Lloyd's.  All  the  Lloyd's  under- 
writers will  sign  one  and  the  same  policy  for  the  particular  risk, 
each  "  Name "  with  its  separate  amount    being  shown   on  the 


ii8  LLOYD'S 

polic)-.  I'-ach  of  the  companies,  of  course,  issues  its  <jwn  separate 
policy,  which  may  be  for  a  large  amount. 

When  the  broker  has  "  [)laced  "  all  the  risk,  he  proceeds  to  fill 
up  a  partially  printed  form  known  as  the  "long  slip",  which 
contains  all  the  information  required  for  the  purposes  of  the 
polic)'.  These  "long  slips"  he  then  takes  round  to  the  various 
underwriters,  who  glance  at  the  original  slip  which  they  initialled 
to  see  that  the  two  agree,  and  they  then  retain  the  long  slip,  and 
have  the  policy  made  out  from  the  data  supplied  by  it. 

In  these  explanations  we  have  been  considering  marine 
insurance  risks:  but  practically  any  risk  can  be  insured  at  Lloyd's. 
Some  underwriters  confine  themselves  strictly  to  marine  business, 
others  will  write  marine  and  fire  or  short-term  life  risks.  Others, 
of  more  sporting  instincts,  will  quote  a  rate  for  almost  anything 
— gate  money,  burglary,  motor  cars,  stamp  collections,  guns, 
twins,  and  musical  instruments  generally. 

TJie  Marine  Insurance  Broker 

Many  or  most  marine  insurance  brokers  are  also  underwriters. 
One  representative  of  the  firm  may  be  in  the  Room,  underwriting, 
while  another  at  his  office  works  the  brokerage  business.  The 
brokers  are  in  touch  with  the  merchants  and  shipowners,  and  are 
very  keen  to  get  their  business  to  insure.  A  fleet  of  a  dozen 
steamers  worth  together,  say,  ;^400,000,  on  which  the  annual 
premium  comes,  at,  say,  £6  per  cent.,  to  £2^,000  is,  from  a 
brokerage  point  of  view,  well  worth  having,  the  brokerage  being, 
nominally  at  any  rate,  5  per  cent,  upon  the  premium.  The 
brokerage  business  may,  in  fact,  easily  be  more  remunerative  than 
the  underwriting.  Underwriters  sometimes  complain,  with  reason, 
that  rates  are  un remunerative,  but  the  shipowners  naturally  look 
at  it  from  another  point  of  view.  As  it  is,  apparently,  a  firm  of 
brokers  who  are  also  underwriters  may  occasionally  find  them- 
.selves,  in  a  conflict  of  interests,  in  a  position  of  some  delicacy. 
The  brokers  also  obtain  profitable  employment  in  placing  re- 
insurances. A  ship  may  be  overdue  and  a  great  company  may 
find  itself  with  a  larger  amount  at  risk  on  the  vessel  than  in  the 
new  conditions  it  cares  to  run.      It  therefore  reduces  its  liability 


LLOYD'S  119 

by  re-insuring  at  Lloyd's  or  with  another  company  a  portion 
of  the  liability,  paying,  of  course,  such  premium  as  the  then 
outlook  may  require;  and  this  may  be,  on  occasion,  25,  50,  or  90 
per  cent.  There  may  be,  however,  many  other  reasons  for 
re-insuring,  and  a  very  large  business  of  the  kind  is  carried  on, 
mainly  through  the  brokers. 

A  company  works  on  fixed  lines,  with  its  maximum  limit  of 
liability  for  every  trade.  As,  owing  to  the  granting  of  "open 
covers  "  to  the  merchants  and  the  sailing  of  a  vessel  before  all  the 
risks  are  declared,  this  maximum  may  be  over-run,  the  company 
itself  takes  out  with  its  friendly  rivals  what  are  known  as  "  excess 
covers  ",  and  these  are  of  great  importance.  If  the  company's 
"  retained  line  "  on  a  certain  voyage  be,  say,  ;^5000,  then  it  will 
have  covers  with  half-a-dozen  companies  for  perhaps  in  all 
;^30,0C)0,  each  of  the  re-insuring  companies  taking,  pro  rata,  its 
proportion  of  any  excess  of  the  retained  ^^^5000.  Declarations  of 
interest  may  continue  to  come  in  to  the  original  company  from 
merchants  and  brokers,  under  open  policies  or  open  covers,  for 
days  or  even  weeks  after  occurrence  of  a  loss.  Then  the  original 
company  makes  up  its  total  and  distributes  any  excess  to  the 
re-insuring  companies.  The  amount  declared,  whether  the  ship 
arrive  or  whether  she  be  already  lost,  is  practically  never 
questioned,  so  great  is  the  confidence  of  the  underwriters  in  the 
good  faith  and  the  office  methods  of  the  original  underwriters. 
Continental  companies  and  English  companies  are,  in  excess 
insurances,  in  close  relation.  From  this  it  results  that  a  big  loss  is 
distributed  in  underwriting  circles  almost  all  over  the  world. 

When  a  total  loss  occurs,  the  procedure  of  claim  collection  is 
simplicity  itself  Merchants  have  only  to  hand  in  their  bills  of 
lading  and  invoices  with  the  policy  in  order  to  get  payment  of 
the  sum  insured.  In  the  case  of  partial  losses  or  damage  to  ship 
or  cargo  the  merchant  or  shipowner  hands  the  policy  and  all 
the  "average  documents"  to  a  professional  "Average  Adjuster" 
(p.  131),  who  draws  up  the  claim  and  charges  a  fee  for  doing 
so.     Claims  may  be  simple  or  extremely  complicated. 

The  greatest  marine  insurance  market  in  the  world  is  London, 
partly  because  London  is  the  greatest  centre  of  trade  and  shipping, 
and  partly  because  of  the  wonderful  facilities  in  the  matter  of 


I20  LLOYDS 

inforniatioii  available  at  Lloyd's.  Wherever  a  market  is  the 
bip^est,  there  a  sort  of  suction  is  created  which  draws  business 
to  it  from  far  and  wide.  And  in  these  days  of  cable^^ams  and 
telef^rams  and  telephones  especially,  the  suction  of  London's 
insurance  market  is  irresistible.  The  American  lake  and  coastal 
steamers,  for  example,  are  largely  insured  in  London,  either 
direct  or  through  English  companies  having  branch-offices  in 
New  York.  An  American  econcjmist  declares  that  London 
controls  three-fourths  of  the  entire  marine  insurance  of  all  the 
world. 

One  other  word  before  we  leave  the  subject  of  underwriting. 
One  often  reads  of  financial  "  underwriting."  This  has  nothing 
whatever  to  do  with  marine  insurance :  the  term  is  merely 
borrowed  from  it.  Say  that  a  new  company  is  being  floated  on 
the  Stock  Exchange  or  that  some  great  loan  is  being  offered  for 
investment.  When  it  comes  to  be  issued,  the  public  money  may 
have  been  absorbed  by  something  else,  or  the  terms  or  attractions 
may  be  coldly  received,  or  an  international  scare  may  have  oc- 
curred. It  might  be  very  serious  to  the  promoters  if  their 
proposals  fell  flat,  so  financiers,  merchants,  stockbrokers  and 
others  are  invited  to  "  underwrite  "  the  issue.  Say  that  a  firm  or 
individual  underwrites  ;^iooo.  He  may  receive  a  commission  of 
2  per  cent,  or  6  per  cent.,  or  whatever  it  may  be,  for  his  guarantee. 
If  the  public  come  forward  and  subscribe  in  full,  the  "under- 
writers "  get  their  commission,  with  no  obligation  to  subscribe. 
If,  however,  the  public  hang  back,  then  the  underwriters  (who  .still 
get  their  commission)  have  themselves  to  become  the  investors  for 
the  amount  not  taken  up,  each  in  proportion  to  the  amount  of 
his  guarantee  or  "  underwriting." 

For  a  good  many  recent  years  the  very  able  and  popular 
successor  to  the  head-waiter  of  ancient  times,  as  Secretary  to 
Lloyd's,  was  the  distinguished  .soldier  and  militarj'  author,  Col. 
Sir  Henry  Hozier,  K.C.B.  On  his  retirement — and  death — he  was 
succeeded  by  Captain — now  Rear-Admiral  —  E.  F.  Inglefield,  R.N. 
Inasmuch  as  Lloyd's  and  the  Admiralty  are  almost  neces.sarily  in 
constant  relations,  it  may  be  supposed  that  the  appointment  of 
a  naval  officer  to  the  honourable  post  of  Secretary  to  the 
Corporation  will  henceforth  constitute  a  precedent. 


LLOYD'S   REGISTER  121 


Lloyd's  Register 


Underwriters  must  from  the  earliest  times  have  recognised 
that,  in  estimating  the  value  of  maritime  risks,  whether  to  ship 
or  cargo,  the  age,  building,  equipment  and  upkeep  of  a  ship  are 
highly  important  factors.  When  first  any  attempt  at  systematic 
ship-classification  was  made  cannot  be  said,  but  almost  without 
doubt  it  was  in  the  steam  of  hot  joints  and  the  odour  of  coffee. 
Edward  Lloyd,  we  know,  kept  at  his  eating-house  a  list  of  ships 
for  his  patrons,  and  quite  possibly  the  list  was  in  some  sort 
of  order  of  merit,  or  the  quality  of  individual  ships  may  have 
been  indicated  by  some  mark  well  understood  by  them.  Some- 
where about  1730  a  printed  list  of  ships  appears  to  have  already 
existed.  The  earliest  printed  register  known,  however,  is  dated 
1764 — 65 — 66.  But  this  book,  already  so  complete,  was  probably 
an  evolution  from  previous  experience.  This  "  Register  of 
Shipping "  must  have  been  for  private  use,  for  the  volume  for 
1779 — 80  forbids  subscribers  to  allow  it  to  be  looked  into  by 
outsiders  and  recommends  them  to  keep  it  under  lock  and  key. 
Even  in  those  days  the  registry-committee  had  their  own  office, 
but  their  meetings  took  place  at  the  coffee-house.  In  1799,  ship- 
builders at  the  out-ports,  resenting  the  special  approval  given  by 
the  committee  to  vessels  London-built,  set  up  a  rival  register. 
In  1833  the  two  committees  joined  forces,  and  agreed  to  publish 
annually  a  single  book  called  "  The  Register  Book  of  British  and 
Foreign  Shipping."  It  will  be  noticed  that,  whatever  the  influence 
of  Lloyd's  underwriters  in  this  publication,  the  title  of  the  book 
made  no  reference  to  Lloyd's.  The  new  and  joint  committee 
was  formed  on  a  basis  which  included  underwriters,  shipowners 
and  merchants.  Financial  support  was  given  to  the  new  enter- 
prise by  Lloyd's,  the  insurance  companies  and  the  West  India 
Dock  Company.  A  good  deal  of  money  was  subscribed,  and  in 
1834  the  publication,  thus  subsidised,  appeared  under  the  title 
"  Lloyd's  Register  of  British  and  Foreign  Shipping,"  From  time 
to  time — as,  indeed,  it  is  to-day — the  book  was  exposed  to 
competition,  the  result  of  discontent,  on  the  part  of  certain  ship- 
owners, with  the  rules  or  methods  of  the  committee.  Perhaps  it 
is  just  as  well  that  this  should  be  so :  but  of  all  the  Registers  in 


122  LLOYD'S   REGISTER 

the  world  Lloyd's  is  by  far  the  most  important.  At  the  outset  of 
registration,  the  hii^hest  class  for  the  hull  of  a  ship  was  A,  and 
for  her  equipment  I,  and  "Ai"  thus  passed  into  the  national 
idiom  as  a  symbol  of  all  that  was  first-rate.  We  hear,  too,  still, 
of  ships  being  "  classed  A  i  at  Lloyd's  "  ;  but  Lloyd's,  as  we  have 
seen,  is  not  a  classification  body.  "Classed  Ai  by  Lloyd's" — 
meaning,  by  the  Society  of  Lloyd's  Register — would  be  correct. 

The  Society  now  occupies  a  large  and  truly  "  A  i  "  building 
in  Fenchurch  Street.  Its  construction  is  admirable  and  its  equip- 
ment quite  unique.  The  general  committee — known  often  as  the 
"Book  Committee"  or,  elliptically,  as  "The  Book" — is  now 
compo.sed  of  72  members  "  representing  underwriters,  shipowners, 
merchants,  shipbuilders,  and  engineers,  London  members,  26  in 
number,  being  elected  by  the  committee  of  Lloyd's  and  the 
General  Shipowners'  Society,  whilst  the  Liverpool  members,  ten 
in  number,  are  returned  by  the  Liverpool  Underwriters'  Associa- 
tion and  the  shipowners'  associations,  and  the  Glasgow  members, 
eight  in  number,  by  the  Glasgow  Undenvriters'  Association,  the 
shipowners'  associations,and  the  Greenock  Chamber  of  Commerce. 
Members  representing  the  other  important  ports  are  elected  b}' 
their  respective  shipowners'  associations  and  Chambers  of  Com- 
merce. The  Committee  thus  constituted  gives  adequate  repre- 
.sentation  to  every  interest  in  the  mercantile  marine.  The 
advisory  body,  known  as  the  Technical  Committee,  consists  of 
1 5  members,  who  are  elected  by  the  Institution  of  Naval  Architects, 
the  North-East  Coast  Institution  of  Engineers  and  Shipbuilders, 
the  Institution  of  Engineers  and  Shipbuilders  in  Scotland,  the 
Iron  and  Steel  Institute,  and  the  English  and  Scottish  Forge- 
masters'  Association  ^" 

This  eminently  practical  and  in  part  highly  technical  body 
draws  up  and  from  time  to  time  reconsiders  rules  of  construction 
or  equipment.  To  obtain  classification  in  "  The  Book  ",  a  vessel 
must  be  built  in  strict  conformity  with  the  rules.  And  not  only 
must  she  be  built  in  such  conformity,  but  she  must  also  comply 
with  the  rules  of  periodical  survey.  A  ship  must  be  not  only 
built,  but  she  must  be  maintained,  at  the  high  standard  required 
by  the  Register.     To  facilitate  these  periodical  surveys,  as  well 

'   Times  Shipping  Number,  13  December,  191 2. 


hD 


S      K 


•s. 


■«s 


LLOYD'S    REGISTER  123 

as  to  secure  that  "  average  damages  "  shall  be  repaired  with  the 
efficiency  also  required,  the  Book  Committee  have  on  their  staff, 
but  located  at  various  British  and  foreign  ports,  some  300  expert 
surveyors.  ("  Lloyd's  Surveyors,"  i.e.  the  Surveyors  of  Lloyd's 
Register ;  not  to  be  confounded — as,  however,  they  often  are — 
with  "  Lloyd's  Agents",  i.e.  the  Agents  of  the  ancient  Corporation 
at  the  Royal  Exchange.)  A  vessel  arriving  "  under  average  "  in 
some  British  or  foreign  port  is  at  once  inspected  by  the  local 
Register  Surveyor,  who  sends  home  to  the  committee  a  full 
report  of  the  damage,  and  eventually  certifies  as  to  the  sufficiency 
of  the  repairs.  The  Surveyors  are  entitled  to  a  pension  on 
retirement.  Owing  to  this  and  other  reasons,  the  annual  costs  of 
the  Society  are  heavy,  but  the  classification  fees  and  the  subscrip- 
tions paid  by  the  underwriters,  shipowners  and  merchants  for  the 
Register  provide  ample  funds.  Money  is,  however,  by  no  means 
the  object  of  the  Society.  Like  the  Salvage  Association  it  aims 
only  at  such  an  income  as  shall  enable  it  to  carry  on  its  important 
work  to  the  greatest  advantage.  Lloyd's  and  Lloyd's  Register, 
though  quite  distinct,  constitute  together  a  veritable  trinity  of 
beneficial  influence  :  they  safeguard  financial  interests,  they  collect 
and  distribute  shipping  intelligence,  they  enhance  the  security  of 
ocean  commerce — let  alone  the  added  .safety  which  they  give 
to  life. 

Lloyd's  Register  decides  on  the  methods  of  shipbuilding  :  but 
after  all,  the  proof  of  the  pudding  is  in  the  eating.  It  is  the 
underwriters  who,  in  the  course  of  their  experience,  get  to  know 
where  defects  exist,  and,  being  represented  on  the  Book  Com- 
mittee, they  are  able  to  secure  consideration  for  their  views.  There 
is,  it  is  true,  no  obligation  on  any  shipowner  to  comply  with  the 
Book's  requirements  :  he  can  please  himself  As  a  matter  of 
fact,  however,  he  has  no  choice.  The  testimony  of  Lloyd's 
Register  as  to  the  fitness  of  a  ship  is  tacitly  but  effectively 
required  by  the  underwriters.  In  the  absence  of  such  testimony 
they  are  likely  to  ask  a  high  premium  for  insurance,  and  ship- 
owners find  the  burden  of  insurance  quite  heavy  enough  without 
doing  anything  to  make  it  heavier.  Ships,  too,  are  built  to 
compete  as  freight-carriers;  and  no  merchant,  if  he  can  help  it, 
is  going  to  put  his  goods  into  a  ship  which  will  involve  him  in 


124  LLOYD'S    REGISTER 

a  higher  premium.  The  vessel  ma\-,  no  doubt,  be  satisfactorily 
classed  in  some  other  register;  but  classed  she  must  be,  some- 
where, and  Llo)ci's  Register  admittedly  and  easily  claims 
precedence.  Many  if  not  most,  indeed,  of  the  great  foreign 
steamers  are  also  in  "  The  Book."  Some  steamers  of  the  great 
passenger  lines,  British  and  foreign,  will  be  found  in  the  Jiook 
unclassed,  but  the  reason  is  well  understood  by  underwriters. 
It  is  common  knowledge  that  the  vessels  of  these  lines  are  built 
not  merely  up  to  but  beyond  the  Book's  requirements.  Some  of 
these  lines,  too,  do  not  insure  at  all,  and  this  fact,  over  and  above 
the  well-known  anxiety  of  the  companies  to  leave  nothing  undone 
to  enhance  the  security  and  reputation  of  their  ships,  renders  the 
underwriters  indifferent  whether  their  ships  are  classed  or  not. 
The  old  "  A  I  "  highest  class  for  wooden  vessels  has,  by  the  way, 
been  superseded  in  the  case  of  steel  and  iron  vessels  by  the  class 
"  >^  lOoA  ",  the  prefixed  cross  indicating  "built  under  special 
survey."  The  Society  is  also  concerned  in  the  survey  of  yacht 
construction,  the  Yacht  Register,  containing  some  2500  vessels, 
being  a  separate  publication. 

In  round  figures,  Lloyd's  Register  contains  entries  of  about 
7000  British  and  3500  foreign  vessels.  Every  year  the  Society 
tests  about  800,000  tons  of  ship  and  boiler  steel  and  about  350 
miles  of  chain  cable  ;  also  about  7000  anchors. 

The  Register  itself  is  truly  a  marvellous  compilation.  In- 
surance companies  and  underwriters  usual  1)-  take  two  copies  of 
it,  one  being  always  at  hand  for  reference,  the  other  at  the 
premises  of  the  Society  for  alterations  and  additions.  These,  week 
by  week,  are  by  some  ingenious  method  printed  in  the  columns 
of  the  Book,  the  completed  copy  being  systematically  sent  r(jund 
to  the  subscriber  and  his  copy  in  use  brought  back  for  similar 
alteration.  The  particulars  given  in  the  Book  are  extraordinarily 
detailed  and  minute.  Altogether,  a  society  as  admirably  con- 
ceived and  managed  as  it  is  beneficent :  and  this  is  saying  much. 
Before  proceeding  to  further  comments  on  "  The  Book  "  itself  we 
may  remark  on  its  two  chief  competitors. 

One  of  these  is  a  British  institution — a  classification  society, 
known  as  the  British  Corporation  for  the  Survey  and  Registry  of 
Shipping.     This   society  was  formed   in   Glasgow  in   or  about 


LLOYD'S    REGISTER  125 

1890  as  the  result  of  fears  lest  the  granting  to  Lloyd's  Register 
of  the  power  to  fix  load-lines  might  operate  prejudicially  to  ship- 
owners. To  meet  these  fears,  a  clause  was  added  to  the  Load- Line 
Bill,  granting  to  the  British  Corporation  powers  similar  to  those 
conferred  on  Lloyd's  Register.  From  a  society  formed  for  this 
limited  object  the  Corporation  developed  into  a  Classification 
Society. 

The  principal  foreign  Classification  Society  is  the  widely 
known  "Bureau  Veritas",  founded  at  Antwerp  in  1828.  It  is,  in 
fact,  an  international  society  and  has  its  special  surveyors  at 
numerous  ports.  Like  the  two  British  societies  it  is  delegated 
by  the  Board  of  Trade  to  assign  load-lines  to  vessels  of  all 
nationalities.  The  society  has  a  British  committee  in  London. 
The  Bureau  publishes  a  very  useful  list  of  all  the  merchant  ships 
of  the  world,  classed  or  unclassed.  In  the  Bureau  Register  there 
are  classed  some  2700  steamers  and  3600  sailing  vessels. 

By  the  kindness  of  Mr  Andrew  Scott,  the  well-known 
Secretary  of  "  The  Book  ",  it  is  permitted  to  supply  the  following 
extract  from  a  page  of  the  Register,  with  interpretative  notes — 
notes  which,  to  the  initiated,  give  a  marvellous  amount  of  in- 
formation. In  the  Register  itself  the  16  columns  extend  unbroken 
across  the  page  as  here  shown  overleaf.  The  interpretation  of 
columns  i  to  1 3  is  as  follows  : 

Morazan.  (3)  Specially  surveyed  at  Antwerp,  No.  i  Survey, 
1909.  (2)  I  Steel  Deck  and  i  Spar  Deck,  part  iron  and  part 
steel,  and  deep  framing,  (5)  Last  special  survey.  May  191 1. 
Boilers  surveyed,  Nov.  191 1;  good  condition.  Machinery  and 
Boilers  specially  constructed  under  supervision  of  Lloyd's 
Engineer-surveyors,  June  1909.  (9)  Anchors  and  Cables  proved 
by  one  of  the  Register's  testing  machines.  (9,  10,  11,  12)  Water 
Ballast,  Cellular  construction,  Double  Bottom,  aft  120  ft.  long 
under  Engines  24  ft.,  forward  146  ft.  long.  Tank  capacity  805  tons. 
Deep  Tank  forward  24  ft.  long,  capacity  492  tons.  Flat  Keel. 
6  Bulkheads,  cemented.  After  Peak  Tank  35  tons.  (11)  Poop 
Deck  33  ft.  Bridge  Deck  190  ft.  Forecastle  39  ft.,  23  ft.  i. 
(13)  Triple  Expansion,  3  Cylinders  (diameter  and  length  of 
stroke).  Shells,  stays,  end  plates,  furnaces  and  combustion 
chamber  of  boiler  made  of  steel.     Boiler  pressure.     342  Nominal 


126 


LLOYD'S    REGISTER 

1 91 2- 1 3.     Lloyd's  Rkgistfir 


1 

1                               3 

4 

.s           6           7 

8 

9 

No.  in 

Kegist'd 

Particulars  of  Classi- 

Built 

Book 

Official 
No. 

Steamer's  Name.      Material,  Rig,  &c. 
.yftulf.                              I-ttf  Name  if  any 

Tonnage 

fication 

Gross 

Character 

's  *^ 

•0 

111. 

When 

By  Whom 

Special  Surveys.           No.  of  Decks,  &c. 

Under 
deck 

«i«  for  Special 
Survey 
Date  of  last 

1% 

Ship 

Where 

Code 

Letters 

Net 

Survey 

Engines 

R.  Thompson 

1477 

Morazan                    steel  Sc  Sr 

3486 

*^  looAi 

N  Yk 

■w 

1905 

12083^ 

K.J.  Milestone      ^.f Ant. No.  1-09 

3201 

.Spar  dh 

3mo 

&  Sons 

HCDM 

98-05         I  Dk  {S//)  &'  spar  dk 

2213 

5,    1  1 

Sunderland 

1 

{pt  Irn  &^pt  St  I)  &'  deep  framing 

BS11,11»{« 

z.niC6, 

00 

Lloyd's 

A&'CP  WB  = 

1478 

Mordenwood             steel  sc  sr 

3'25 

►J<  1 00  A I 

Sws 

u 

1910 
dmo 

Ropner  & 

128808 

C.T.Searle    -ii 

2919 

6,  II 

Sons,  JLd. 

HKCG 

I  Dk{ptIrnptStl) 

1977 

* 

x.inc6, 

10 

Lloyd's 

Stockton 
A&'CP 

1479 

Morea                   steel  Twin  Sc  Sr 

10890 

^  looAi 

Gls 

h\ 

1908 

Barclay,  Curie 

128235 

J.  D.Andrews    -12 

7783 

Spar  dk 

iimo 

&  Co.  Ld. 

HNJF 

Elec.  light    2  Dks  [Stl-ws  Mpt  Teak) 

5962 

II,  08 

CHa^ow 

Ref.  Mchy.  Wireless  er  Spardk  (Stl- 

^ 

X.1MCC11, 

08 

Lloyd's 

A&r'CP 

teak  s)  Orlopdkin  Nos.  i,  4,  5  ^^  7 

WB= 

holds  (Stl  in  No.  5  &•  7) 

Horse-Power.  2  Single-ended  Boilers.  6  plain  furnaces.  Grate 
Surface  106  ft.     Heating  Surface  4488  ft.     Flush  Deck. 

All  this  information  is  supplied  by  reference  to  the  Key 
printed  in  the  Book,  in  English  and  in  French.  The  headings  of 
the  pages  throughout  the  Book  are  alternately  in  these  two 
languages.  The  Book  contains  a  vast  mass  of  information  of 
peculiar  interest  to  shipowners  and  underwriters ;  a  wonderful 
book.  At  the  recent  launching  of  the  mammoth  Aqtiitania 
the  managing  director  of  the  builders  said,  "  What  the  mer- 
cantile trade  of  this  country  owed  to  Lloyd's  Register  very  few 
people  had  the  slightest  idea  of  The  Society  had  amassed  an 
amount  of  knowlege  which  was  unprecedented,  and  he  desired  to 
make  public  acknowledgment  of  the  .service  they  had  rendered 
to  the  Cunard  Company  and  to  the  builders  in  connection  with 
the  design  of  the  Aquitania." 

To  those  familiar  with  the  work  and  methods  of  "  The  Book  " 
this  high  testimony  will  contain  nothing  new. 


INTERNATIONAL   CODE   OF   SIGNALS         127 
Steamers,    Mop-Mor 


Owners 


iiverpool  Shipping 
lo.  Ld.    (H.Fernie 
&  Sons,  Mgrs.) 
•llDBa  \2o'  uE  24' 

Constantine  & 
'ickering  S.  S.  Co. 

WB=CellD 

.&O.Stm.Nav.Co 


■llDBa()f  uE&rB 


Regist'd  Dimensions 
Deck  Erections,  &c. 


Port 

of 
Registry 


360-0  I  467   I  £5-1 
i'33'Bi9o'F39'23-i 
FK 
/146'  %o-^t  DTf2^' 

331-0  I  47-0  I  23-3 
P31'  Bioo'F37' 

FK 


Flag 


Liverpool 
British 
dBHCem 

Middisbro' 
British 
^BHCem 


Baio%' uEiz' f\^V  \io2tAPTiit 


540'0  I  61  "2  I  247 
Pio8'B277  33'2 
F92'        FK&BR3" 

i6o'fi^'  iJt20tFPT 


Glasgow 

Brit"ish 

\o  BHpt  Cem 

66tAPT6U 


13 


Engines 


No.  &  Dia.  of  Cylinders. — Stroke. 
Boiler  Pressure.  NH'=  Horse 
power  by  Society's  formulae ; 
1^1?=  power  by  Ship's  Register. 

Particulars  of  Boilers  &  Furnaces 
Engine  Maker's  Name 


T.3Cy.23i",39"&66"-45"{i) 
I  Soft  isoib  342NH' 

2SB,6;)/",GSio6,HS4488     FD 
G.  Clark,  Ld.  Sunderland 

T-3Cy.23r,39"&64"-42"(j) 
i6otb  looft  271NH' 

2SB,6f/^,  GSIl8,HS4l42 

Blair  &  Co.  Ld.  Stockton 

Q.8Cy.3oi",44",6i"&87"- 
54"(j-)2i5tb  1842^^^? 

4D&4SB,j6(/,  GS700, 

HS27843 
Barclay,  Curie  &  Co.  Ld.Gls. 


H 

'5 

16 

Moulded 
depth 

Registers  in  which 

classed,  if  not  in  L.  R. 

Date  of  B.  of  Trade  Cert. 

1-2 

1 

Freeboard 
amidships 

ft.       in. 

25  "  9 
S3  "  9h 

11,09 

24  "  9 

S4  "  4 

37  "  3 

BT 

till 
ro,  12 

International  Code  of  Signals 

In  the  above  specimen  extract  from  Lloyd's  Register  will  be 
seen  in  the  first  column  the  Signal  Letters  of  each  ship.  There 
is  an  international  code  of  such  signal  letters.  The  code  forms 
the  universal  means  of  ocean  communication.  There  are  26 
distinct  flags  to  the  alphabet  with  a  flag  for  Yes,  a  flag  for  No, 
and  a  special  answering  pennant.  The  code  is  used  on  H.M. 
ships  and  has  been  adopted  by  all  the  principal  maritime  Powers 
for  their  imperial  as  well  as  for  their  mercantile  navies.  All 
candidates  for  masters'  and  mates'  certificates  of  competency  are 
required  by  the  Board  of  Trade  to  pass  a  satisfactory  examina- 
tion in  the  code,  and  no  other  code  is  recognised  at  our  coastal 
stations  and  at  the  signal  and  semaphore  stations  of  other 
countries.  Every  vessel  has  her  own  code  signal,  and  these 
allotted  signals  are  published  in  the  Book — on  the  one  hand  an 
alphabetical  list  of  the  ships,  with  the  code  letters  allocated  to 


128         INTERNATIONAL   CODE   OF   SIGNALS 

each  ;  on  the  otlicr  the  code  letters  themselves  j^rouped  in  alpha- 
betical sequence — so  that  the  name  of  a  vessel  showin^r  her  signal 
or  code  letters  can  be  at  once  read  by  reference  to  the  list  in  the 
Book.  British  owners  requiring  allotment  of  a  distinguishing 
signal  can  obtain  it  on  application  to  the  Registrar  General  of 
Shipping:  if  the  vessel  is  Colonial-owned,  on  application  to  the 
local  Registry.  The  ship's  Regi.ster  has  to  be  sent  in  with  the 
application,  in  order  that  the  ves-sel's  distinguishing  letters  may 
be  officially  recorded  on  it.  Foreign  owners  have  to  apply  to 
Messrs  Spottiswoode  &  Co.,  Ltd.,  or  to  the  Secretary  of  Lloyd's. 
In  Lloyd's  Register  (Vol.  II)  are  coloured  representations  of  the 
signal  flags  with  the  letter  represented  by  each.  The  code,  over 
and  above  its  list  of  distinguishing  signals,  is  very  comprehensive 
in  its  sentences,  and  is  especially  valuable  as  regards  those  of 
danger  or  warning.  It  is  largely  used  on  behalf  of  charterers 
and  owners  and  of  shipping  generally  at  the  world's  signal 
stations,  and  of  cour.se  as  a  means  of  communication  between 
ships  at  .sea.  The  conditions  for  signalling  to  vessels  calling 
"  for  orders  "  are  published  by  Lloyd's  in  the  shipping  Press. 

The  Baltic 

It  is  pure  chance  that  the  Baltic,  originally,  like  Lloyd's,  a 
coffee-house,  is  not  widely  known  as,  say,  "  Smith's  "  or  "  Brown's." 
Either  would  be  better  than  its  present  name,  which  conveys 
a  limitation  quite  misleading.  The  Baltic  is,  in  fact,  the  house 
or  axis  of  sea-borne  property,  ships  and  merchandise,  just  as 
Lloyd's,  in  a  sense,  may  be  said  to  be  its  insurance  policy  and 
news-centre.  Amongst  the  ancient  city  coflfee-houses  which  in 
early  days  served  as  the  clubs  or  exchanges  for  this  or  that 
business  community  was  the  "Jerusalem"  in  Cowper's  Court, 
Cornhill,  well  within  living  memory  a  little  Exchange  frequented 
by  shipping  folk.  Probably  it  took  its  name  from  the  Eastern 
or  Levantine  traders  who  at  the  outset  most  frequented  it. 
Another  of  such  establishments  was  the  "  Virginia  and  Mary- 
land "  (re-christened  the  "  Virginia  and  Baltick  ")  coffee-house, 
mentioned  in  the  following  quaint  advertisement  in  the  Daily 
Post  of  May  24,   1 744  : 


The  Baltic;  views  of  "The  Floor" 


THE   BALTIC  129 

"  This  is  to  give  NOTICE, 

That  the  House  late  the  Virginia  and  Maryland  Coffee-house 
in  Threadneedle  Street,  near  the  Royal  Exchange,  is  now  open'd 
by  the  Name  of  the  Virginia  and  Baltick  Coffee-house,  where  all 
Foreign  and  Domestick  News  are  taken  in  ;  and  all  Letters  or 
Parcels,  directed  to  Merchants  or  Captains  in  the  Virginia  or 
Baltick  Trade  will  be  carefully  deliver'd  according  as  directed, 
and  the  best  Attendance  given,  by 

Reynallds  and  Winboult. 
Note,  Punch  made  in  any  Quantity,  in  the  greatest  Perfection, 
without  Adulteration,  which  is  seldom  found  in  any  of  the  most 
noted  Houses  ;  also  Brandy,  Rum,  and  Arrack  (neat  as  imported) 
are  sold  in  the  Vaults  under  the  Coffee- House,  at  the  lowest 
Prices ;  where  all  Customers,  we  have  had  the  Favour  of  serving 
at  our  late  Warehouse  in  Leadenhall  Street,  we  hope  will  continue 
to  send  their  Orders  as  above. 

We  have  receiv'd  Advice,  that  several  Bags  of  Letters  and 
Parcels  are  coming  which  are  directed  to  be  left  at  the  above 
Coffee- House, " 

The  repeal  of  the  Corn  Laws  gave  a  great  impetus  to  London's 
foreign  corn  trade,  and  the  Baltic's  importance  increased  accord- 
ingly. The  exchange  eventually  acquired  premises,  still  in 
Threadneedle  Street,  at  South  Sea  House,  now  occupied  by 
the  British  Linen  Company  Bank.  With  the  opening  of  the 
Suez  Canal,  the  extensive  laying  of  submarine  cables  and  the 
uprising  of  a  fleet  of  tramps,  came  a  further  accession  to  the 
business  of  the  one-time  coffee-house,  the  premises  once  more 
becoming  over-crowded.  In  1892  a  rival  "Shipping  Exchange" 
was  established  in  Billiter  Street,  the  business  of  the  Jerusalem 
being  merged  in  that  of  the  new  exchange.  The  Australasian 
and  Colonial  merchants  and  the  "  loading  brokers "  gave  it  a 
strong  support :  the  premises,  in  fact,  became  presently  inadequate. 
The  eventual  result  was  that  in  1900  the  Baltic  and  the  Shipping 
Exchange  joined  forces.  A  large  and  valuable  site  was  acquired 
in  St  Mary  Axe  as  the  premises  of  "  The  Baltic  Mercantile  and 
Shipping  Exchange,  Ltd.,"  with  a  capital  of  ^^200,000.  It  is 
a  vast  building,  provided  with  a  ground-floor  hall  for  the  members, 

o.  9 


I30  TlIK    liALTIC 

probably  by  far  the  lar^^cst  business  floor  in  London.  "  The 
Floor",  in  fact,  with  its  splendid  proportions  and  wide  space  puts 
quite  into  the  shade  "The  Room"  at  Lloyd's  with  its  old-fashioned, 
crowded,  though  doubtless  in  man)-  respects  convenient,  coffee- 
room  arrani^ements. 

The  l^altic  has  some  2500  members,  of  practical!)'  e\ery  com- 
mercial nationalit)' — shipowners;  shipbrokers;  <;rain  merchants; 
oil,  coal  and  timber  merchants  ;  wiiarfin^ers  and  tu<(-owners  ; 
buyers  and  sellers.  It  is  London's  <^reat  sale-room  for  whole 
cargoes,  its  great  centre  at  which  their  transport  is  arranged. 
Chartering  is  here  always  in  full  force.  Say,  for  example, 
that  a  merchant,  Ru.ssian  or  British,  has  a  huge  harvest  of 
soya  beans  to  be  shipped  at  Kharbin  or  Vladivostock.  He 
talks  about  it  on  "  The  Floor."  Shipbrokers  learn  of  it  and 
approach  him.  The  brokers  happen  to  know  also  that  tonnage  is 
required  for  large  quantities  of  coal  destined  for  the  East  or  for 
depots  or  purchasers  on  that  voyage.  Here  is  a  profitable 
chance  for  the  exerci.se  of  their  ability.  They  have  been  syste- 
matical!)' follcjwing  the  movements  of  tramp  shipping,  they  know 
who  are  tlie  owners  who.se  vessels  will  present!)'  be  ready  to  load 
coal  out  and  who  will  be  glad  of  an  opportunity  to  secure  a 
double  charter.  They  will  know,  also,  of  the  vessels  already  on 
their  way  to  the  East,  with  coals  or  rails,  and  of  vessels  scattered 
here  and  there  which  could  go  on  to  Manchuria  in  ballast.  And 
as  with  soya  beans,  so  with  timber,  seed,  jute,  hemp,  sugar  and 
all  the  rest :  but  especially  with  grain.  What  the  Corn  Exchange 
is  for  wheat  on  the  spot  or  in  small  parcels,  the  Baltic  is  for 
whole  cargoes.  No  samples  of  any  kind  are,  however,  allowed 
to  be  shown  on  "  The  Floor." 

The  Baltic  owns  the  whole  building,  and  in  its  upper  part 
are  rooms  available  for  the  various  purposes  of  its  different 
communities,  and  notably  for  the  frequent  and  important  ca.ses 
of  arbitration  on  the  quality  of  produce  sold  and  bought  afloat. 
The  rental  of  these  upper  premises  is  reported  to  )'ie!d  to  the 
undertaking,  indeed,  some  ;^22,ooo  a  year.  It  is  an  extra- 
ordinarily bu.sy  j)lace.  It  is  stated  that  the  criers  in  the  central 
pulpit  in  the  great  hall  call  8000  names  in  a  single  day,  and  that 
i^i  5,000  a  year  is  earned  on  the  telephone  calls. 


AVERAGE   ADJUSTERS  131 

Average  Adjusters 

Through  all  the  world-encircling  web  of  ocean  commerce 
runs,  as  a  broadly  woven  and  inextricable  thread,  the  risk  of  loss 
and  "  average " — to  every  ship  and  cargo,  to  every  bale  or 
package,  an  inevitable  risk,  a  risk  in  countless  instances  to  become 
a  certainty.  Damage  in  the  case  of  the  ship  to  be  simply  rein- 
stated by  the  underwriters  ;  damage  to  the  cargo  to  be  made  good, 
not  as  an  integral  amount,  but  in  the  proportion  which  the  sound 
value  of  the  merchandise  bears  to  the  sum  insured.  For  example, 
merchandise  insured  by  the  shippers  for  say  ;^I200  is  worth  in  a 
sound  condition  on  arrival  ;^iooo.  Being  sea-damaged  it  sells  for 
only  i^500,  an  "  average"  of  50  per  cent.  The  underwriters,  under 
their  policy  for  i^i200,  settle  an  average  not  of  ;^500  but  of  50  per 
cent.,  i.e.  on  the  sum  insured,  £600.  This  seems  simple,  but  owing 
to  special  "  average  clauses  "  and  the  question  of  extra  charges 
consequent  on  the  damage,  the  complications  may  on  occasion 
be  considerable.  And  so  with  the  ship  :  although  the  damage 
incurred  has  only  to  be  made  good  integrally,  difficult  questions 
arise  as  between  wear-and-tear  or  damage  not  covered  by  the 
policy  on  the  one  hand  and  damage  which  is  so  recoverable  on 
the  other,  with  the  liability  for  extra  or  incidental  charges 
dependent  wholly  or  in  part  on  the  liability  for  the  "  average." 
Here  we  have  in  view  Particular  Average  claims,  but  these  are 
ordinarily  simple  as  compared  with  the  preparation  of  a  huge  and 
voluminous  General  Average,  or  the  apportionment  of  Salvage 
— as  will  be  understood  by  reference  to  the  separate  discussion 
of  these  subjects. 

In  the  early  days  of  ocean  commerce  it  rested  with  the  ship- 
owner or  the  merchant  to  draw  up  his  own  claims  for  submission 
to  the  underwriters.  The  introduction  of  new  insurance  clauses 
and  conditions,  however,  and  the  lengthening  chain  of  legal 
decisions  on  disputed  points,  combined  to  increase  the  difficulties 
and  technicalities  of  adjustment.  Gradually,  then,  a  new  and 
important  business  was  evolved,  that  of  the  professional  average 
stater  or  adjuster.  To-day,  in  fact,  the  average  adjuster  has 
become  a  necessary  factor  in  ocean  trade.  Underwriters  some- 
times complain  that  in  allocating  items  for  which  the  liability 

9—2 


132  AVERAGE    ADJUSTERS 

may  seem  cli)ubtful  the  adjusters  incline  rather  to  favour  (if  a 
"hull  insurance"  be  in  question)  the  shipowner  who  employs 
them  than  the  underwriter  who  pays  them  :  for  the  adjustment 
fee  is  paid  in  addition  to  the  claim.  Shipowners,  on  the  other 
hand,  complain  as  much  that  the  adjusters  in  their  meticulous 
desire  for  accuracy  lean  unduly  to  the  underwriters.  From  which 
it  may  be  gathered  that  the  adjusters  cannf)t  always  satisfy  both 
parties,  and  that  their  honourable  occuj:)ation  is  not  without  its 
difficulties.  The  adjuster  has,  however,  no  legal  status.  His 
adjustment  is  a  legal  or  binding  document  only  so  far  as  it  is 
correct,  and  not  a  figure  further.  If  in  any  case  an  adjustment 
is  disputed  by  the  underwriters — and  this  happens  comparatively 
seldom — the  dispute  will  probably  be  on  some  technical  point  or 
on  the  view  to  be  taken  of  some  of  the  documentary  or  other 
evidence  supplied  to  the  adjuster  by  the  assured. 

Some  forty  years  ago  the  average  adjusters  formed  themselves 
into  an  Association  for  academic  purposes,  and  this  Association 
has  in  the  interval  acquired  considerable  importance.  Members 
or  associates  in  order  to  qualify  as  such  are  required  to  submit 
themselves  to  examination  by  a  special  committee,  and  the 
questions,  written  and  oral,  dealing  with  the  law  and  practice  of 
average,  are  understood  to  constitute  a  serious  ordeal.  An 
adjuster  is  not  bound  to  belong  to  the  Association,  but  any 
adjusters  there  may  be  who  are  not  identified  with  it  must  be 
very  few  in  number. 

Most  of  the  adjusters,  naturally,  are  in  London,  but  some 
firms,  comprising  several  members  of  the  Association,  have 
offices  at  two  or  three  ports.  The  individual  members  and 
associates  number  in  all  threescore.  A  general  meeting  is  held 
annually  at  which  the  chairman  for  the  year  reads  an  address, 
which  is  followed  by  a  discussion  ;  and  new  "  Rules  of  Practice  ", 
to  be  followed  by  the  members,  are  submitted.  Underwriters 
and  shipowners  attend  these  meetings  and  are  entitled,  by  their 
representatives,  to  propose  new  rules  or  to  object  to  rules  pro- 
posed. The  year's  chairman  may  be  either  a  member,  one  of 
the  representative  members,  or  an  honorary  member.  It  speaks 
volumes  for  the  esteem  in  which  the  Association  is  held  that  of 
its  15  honorary  members  no  less  than  9  are  H.M.  Judges. 


INSTITUTE   OF   LONDON    UNDERWRITERS      133 

The  Association  issue  annually  a  report  of  their  proceedings, 
with  an  analytical  table  of  the  year's  legal  decisions  affecting 
shipping  and  insurance  as  a  supplement  to  it — a  valuable  addition 
to  the  literature  of  ocean  commerced 


The  Institute  of  London  Underwriters 

Broadly  stated,  the  London  underwriters  may  be  divided  into 
two  classes,  Lloyd's  and  the  Companies.  Between  these  two 
classes  there  is  considerable  rivalry,  none  the  less  active  in  that 
it  is  generally  on  friendly  lines.  As  a  rule,  Lloyd's  is  a  cheaper 
market  than  the  Companies,  owing  to  the  heavy  establishment, 
management  and  directorate  expenditure  falling  on  the  Com- 
panies. On  the  other  hand,  the  Companies  by  means  of  their 
directors'  influence  and  by  advantages  peculiar  to  the  company 
system,  appeal  to  many  insurers.  The  Companies  all  pay  a  large 
annual  subscription  to  Lloyd's,  which  gives  their  representatives 
access  to  "The  Room"  and  the  information  filed  there,  while  copies 
of  all  cable  messages  received  by  Lloyd's  are  at  once  sent  round 
to  the  Companies  by  a  special  staff  of  messengers.  But  if  there  is 
competition  between  the  Companies  and  Lloyd's,  so  also,  and  no 
less  active,  is  there  competition  amongst  the  members  of  Lloyd's 
inter  se  and  between  Company  and  Company.  The  internal 
rivalry  at  Lloyd's  makes  it  very  difficult  to  secure  the  adhesion  of 
Lloyd's  collectively  to  new  clauses  or  policy  conditions  which  ex- 
perience may  show  to  be  desirable  in  the  interests  of  the  members 
generally,  and  still  more  difficult  is  it  to  get  co-operation  between 
all  the  members  and  the  Companies.  The  inter-competition  of 
the  Companies,  together  with  the  rivalry  of  Lloyd's  at  large,  is 
similarly  in  the  way  of  protective  cohesion  amongst  the  Companies. 
Some  thirty  years  ago,  however,  the  Companies  resolved  to 
associate  themselves  for  the  purposes  of  common  information 
and  defence,  and  the  Institute  of  London  Underwriters  was  the 
outcome.  The  Company  underwriters  meet  frequently  for  dis- 
cussion, from  time  to  time  overhauling  the  clauses  in  general 

^  Amongst  the  Honorary  Members  is  the  writer,  who  for  many  years  occupied  the 
honourable  position  of  Secretary  to  the  Association,  and  in  1898  was,  as  an  Honorary 
Member,  privileged  to  be  Chairman  for  the  year. 


134      INSTITUTE   OF   LONDON    UNDERWRITERS 

use,  .md  issuing  them  collectively,  under  their  several  heads; 
Hulls  for  Time,  Hulls  for  Voyage,  F"reight,  and  so  forth;  and 
these  batches  of  approved  clauses  for  the  year  are  widely 
known  as  "The  Institute  Clauses."  If  a  hull  for  time  be 
insured,  for  examj)Ie,  the  "  Institute  Time  Clauses"  will  be  stuck 
on  the  policy  in  a  batch,  and  many  Lloyd's  underwriters  adopt 
the  clauses.  It  is  easy  to  imagine  that  if  a  big  and  valuable 
steamer  were  insured  partly  at  Lloyd's  and  partly  with  the 
Companies,  and  with  different  underwriters  using  different 
clauses,  much  complication  might  arise — and,  indeed,  used  not 
infrequently  to  arise — in  the  event  of  claim. 

The  Institute  acts  in  the  interests  more  especially  of 
the  Companies,  though  most  things  which  will  benefit  the 
Companies  will  be  to  the  advantage  of  underwriters  generally. 
It  is  in  friendly  relations  with  the  Liverpool  Underwriters' 
Association  and  with  the  various  Continental  underwriting 
associations,  and  from  time  to  time  it  sends  delegates  to  attend 
their  meetings.  The  object  of  these  meetings  is  generally  to 
obtain  a  common  agreement  as  to  the  minimum  rates  to  be 
charged  or  the  maximum  concessions  to  be  granted  in  this  or 
that  important  world-business.  And  if  at  any  time  the  Companies 
suffer  under  any  administrative  disadvantage  or  desire  to  make 
representations  to  the  Treasury,  the  Board  of  Trade,  the  Trinity 
House  or  other  bodies,  the  Chairman  or  Secretary  of  the  Institute 
speaks  with  their  collective  voice. 

At  Liverpool  and  Glasgow  similar  associations  are  established, 
and  these  are  in  close  and  friendly  relations  with  the  Institute. 

Wrecks  and  Salvage 

The  total  wreck  of  an  "argosy  that  stemmed  the  waves" 
must  in  early  days  have  been  a  serious  disaster,  and  the  fact 
that  ship  and  cargo  were  neither  of  them  insured  certainly 
would  not  tend  to  lighten  it.  But  maybe  a  dozen  or  a  score  or 
so  of  the  ancient  argosies  could  be  stowed  into  the  hold  of 
a  modern  tramp,  cargo  and  all.  And  though  now,  to  the  owners 
of  both  ship  and  cargo,  under  the  modern  blessings  of  insurance, 
the  disaster  may  on  occasion  be  anything  but  disastrous,  to  the 


WRECKS   AND   SALVAGE  135 

underwriters    certainly  it  will  be  serious.     In   the   old   days,   if 
a  vessel  went  ashore,  it  was  often  possible  by  jettison  or  lighten- 
ing of  cargo,  by  backing  of  sails  and  hauling  on  anchors  dropped 
out  astern,  to  get  her  off  again.     Nowadays  the  huge  steamer 
which  runs  ashore  has  as  a  rule  either  to  be  got  off  by  special 
salvage  appliances  or  to  break  up.     Her  screw  may  sometimes 
help  her,  but  if  the  water  be  shallow  or  the  bottom  rocky,  as 
likely  as  not  she  may  strip  the  blades  off  or  fracture  her  shaft. 
The  captain  will  do  the  best  he  can, according  to  the  circumstances: 
if  she  be  firmly  fixed  he  may  even  decide  to  open  his  valves  and 
let  the  water  fill  her,  to  keep  her  steady,  if  pounding  dangerously 
on  a  rocky  shore.     When  an  ancient  argosy  was  in  question,  all, 
broadly  stated,  depended   on   the  efforts  from  within  the  ship 
herself     For  the  modern  floating  warehouse,  on  the  other  hand, 
all  depends  on  assistance  from  without.     And  so  great  are  the 
values  which  are  now  at  stake  that  organised  provisions  have 
been  made  by  the   underwriters   for  rendering  assistance.     In 
London  and  in  Liverpool,  notably,  two  societies  exist  for  render- 
ing assistance  as  promptly  and  effectually  as  -possible  to  ships 
and  cargoes  in  distress.     Ships  and  cargoes  have,  however,  not 
necessarily  to    be  regarded   as  one  and   the  same  for  salvage 
purposes,  as  a  valuable  ship  may  get  ashore  in   ballast ;  or  a 
laden  ship  may  be  hopelessly  ashore  and  her  cargo,  or  much  of 
it,  still  be  recoverable.     There  are  goods  not  a  few  which  may 
remain  submerged  for  a  considerable  time  without  being  greatly 
the  worse,  while,  notably,  specie,  copper,  tin  and  lead  will  sustain 
no  damage  at  all,  and  may  be  recovered  and  not  infrequently  are 
recovered,  little  the  wor.se,  many  years  after  their  disappearance 
beneath  the  waves.     And,  in  fact,  the  scientific  diving  resources 
of  the  present  day  now  and  again  effect  the  recovery  of  valuable 
metals — or,  on  occasion,  blue  and  white  china — which  have  been 
under  the  sea  or  sea-bed  for  a  century  or  two.    Powerful  "blowers" 
or  sand-suckers  can  be  set  to  work  practically  to  open  up  the 
sandy  bottom  of  the  sea,  while  dynamite  and  drills  and  lifting 
appliances  can  clear  the  way  for  deep-sea  divers  at  places  and  in 
depths  aforetime  unapproachable.     And  the  resourcefulness,  if 
not  the  resources,  of  the  skilled  modern  diver  is  inexhaustible. 
Ships  sunk  by  collision  in  deep  water  in  navigable  channels,  too, . 


136  WRECKS    AND    SALVAGE 

can  hy  inodcrn  methods  of  floatation  he  lifted  tide  b\'  tide,  if  not 
of  too  fjreat  \veij:jht.  and  moved  into  depths  at  which  the  divers 
can  ij^et  convenient!)'  to  work  upon  them.  The  damaj^e  done 
by  the  collision  is  inspected,  measured  and  reported  on  by  the 
divers,  and  plates  carefully  adapted  to  cover  up  the  hole  are 
lowered  into  place.  By  means  of  powerful  pneumatic  drills 
driven  on  the  attending  salvage  tug  the  repairs  can  be  effected 
under  water.  Then  perhaps  every  opening  into  the  ship  can  be 
secured  by  the  divers  and  the  water  driven  out  of  her  by  com- 
pressed air  or  pumped  out  till  the  ship,  once  more  afloat,  can  be 
hauled  ashore  at  high  water  and  made  tight  enough  to  be  got  into 
a  dock.  Or  perhaps  a  ship  may  get  on  the  ground  at  some  distant 
spot  far  remote  from  salvage  appliances,  but  at  which,  if  such  ap- 
pliances could  be  made  available,  sal\  age  would  offer  no  insuper- 
able difficulties.  As  to  this,  however,  there  may  be  considerable 
doubt  until  divers  can  be  got  to  the  spot  and  their  opinion  cabled 
home.  Then,  again,  a  big  ship  full  of  valuable  cargo  may  get 
ashore  and  break  in  half,  but  the  cargo  or  much  of  it  may  be 
quite  recoverable  by  means  of  scientificall\-  conducted  operations. 
When  recovered,  it  may  be  spread  upon  the  shore  at  some  spot 
at  which  it  is  impo.ssible  to  re-ship  it,  or  it  may  be  necessary  to 
open  it  out,  on  acres  of  ground,  in  order  to  dry  it.  Then  it  ma}- 
be  sold  on  the  spot  or  conveyed  by  land  to  the  nearest  market 
and  there  sold,  or  to  the  nearest  port  to  be  brought  home,  some 
of  it  to  be  disposed  of  at  a  salvage  sale,  some  perhaps  to  be 
re-conditioned  for  re-shipment  or  for  .sale.  And  when  one  thinks 
of  the  carrying  capacity  of  the  modern  steamer  it  is  ea.sy  to 
realise  how  gigantic  on  occasion  such  tasks  may  be.  They  can, 
in  fact,  only  be  successfull}'  undertaken  b\'  societies  or  strongl)- 
backed  individuals  whose  experience,  skill  and  appliances  specially 
qualify  them  for  the  work. 

Chief  amongst  these  societies  are  the  widely  known  London 
Salvage  Association — the  "Association  for  the  Protection 
of  Commercial  Interests  as  respects  Wrecked  and  Damaged 
Property  " — and  the  Liverpool  Salvage  Association.  Both  these 
important  bodies  are  constituted  mainly  by  underwriters  ;  but 
they  are  also  of  great  value  to  shipowners,  to  whom  the\' 
often   render  notable  .service.     Both    associations  possess    v^ery 


bo 


i^ 


WRECKS   AND   SALVAGE  137 

powerful  pumps  and  appliances,  some  of  which  are  stationed 
abroad  or  at  home  at  places  where  experience  shows  that  it  may- 
be all-important  to  have  them  readily  available.  The  Liverpool 
Association  also  possesses  several  powerful  and  admirably 
equipped  tugs,  discarded  gunboats.  The  Association  sends 
these  wherever  they  may  be  required  or,  like  the  London 
Association,  makes  contracts  with  the  owners  of  salvage  steamers, 
of  which,  British  and  foreign,  a  certain  number  are  usually  open 
to  a  contract.  Such  contracts  may  be  either  on  the  generally 
approved  "  no  cure,  no  pay  "  basis,  or  with  a  certain  sum  guaran- 
teed and  with  a  percentage  on  the  value  of  the  property  salved  ; 
or  "  no  cure,  no  pay "  and  salvage  on  a  basis  to  be  mutually 
arranged,  or  to  be  fixed  b}-  arbitration  on  conclusion  of  the 
operations. 

Now  let  us  take  the  case  of  a  wreck  handed  over  to  the 
London  Association.  There  comes  through  to  Lloyd's  a  cable- 
gram announcing  that  the  big  steamer  Alpha  bound  to  (or  from), 
say,  Australia  or  the  East,  has  gone  ashore  on  the  coast  of,  say, 
France  or  Spain.  The  cablegram  states  that  she  has  grounded 
at  an  exposed  (or  sheltered)  spot  on  a  rocky  (or  sandy)  bottom  : 
that  the  sea  is  breaking  over  her,  that  the  crew  have  been  got 
ashore,  and  that  her  position  is  dangerous.  Lloyd's  underwriters 
are  heavily  interested,  the  Companies  are  heavily  interested  ; 
almost  everybody  in  the  insurance  world  is  "  on  it "  more  or  less, 
either  directly  or  by  re-insurance.  The  Companies  know  of 
the  loss  immediately,  because  they  all  subscribe  to  Lloyd's,  and 
copies  of  all  such  cablegrams  are  sent  to  them  by  messenger  on 
receipt.  The  Salvage  Association  is  immediately  called  in. 
Lloyd's  agents  all  over  the  world  have  a  copy  of  Lloyd's  special 
cable  code,  in  which  whole  sentences  relating  to  damage  or 
salvage  can  be  sent  under  single  words :  and  the  variety  of  such 
carefully  framed  sentences  covers  enquiries  and  information  of  a 
kind  far-reaching.  The  Association,  which  also  possesses  a  copy 
of  this  important  compilation,  then  codes  a  cable  of  enquiries  and 
despatches  it  to  Lloyd's  agent  nearest  to  the  scene  of  the  wreck. 
Telegrams  come  in  rapidly.  Possibly  a  special  meeting  is  called 
at  the  Association  premises,  close  to  Lloyd's,  at  which  a  course 
of  action  is  decided  on  ;  or  the  initial  steps  may  be  so  obvious 


I3S  WRECKS    AND   SALVAGE 

that  no  special  instructions  to  the  secretar}-  are  deemed  necessary. 
The  secretary  of  the  Association  has  been  at  such  work  for 
>ears  ;  he  knows  exactly  what,  in  each  circumstance,  is  best  to 
Ixi  done,  and  he  does  it,  either  on  his  own  initiative  or  in  consul- 
tation with  two  or  three  underwriters  specially  interested,  who, 
at  the  request  of  their  colleagues,  have  constituted  themselves 
into  a  little  informal  committee  to  co-operate  with  and  assist  the 
secretary  of  the  Association.  Whether  the  circumstances  ma}' 
he  such  as  to  require  a  total  loss  to  be  paid  at  once  or  whether 
this  shall  be  deferred,  the  underwriters  are  quite  alive  to  the  fact 
that  sooner  or  later  all  losses  will  have  to  be  made  good  out  of 
their  pockets,  and  meantime  they  rely  on  the  experience  and 
ability  of  the  Salvage  Association  to  lighten  the  burden  of  the 
loss. 

The  London  Salvage  Association  is,  actually  or  practically, 
a  mutual  association  of  underwriters  co-operating  in  their  own 
protection.  The  Association  is  conjointly  managed  by  a  com- 
mittee of  Lloyd's  underwriters  and  company  representatives, 
the  Association  premises,  whatever  the  ordinary  friendly  rivalries 
of  the  two  classes  of  underwriters,  being  always  looked  upon  as 
neutral  ground.  The  annual  expenses  are  pretty  heavy,  but 
these  are  made  good  by  the  fee  fixed  by  the  committee  on  the 
completion  of  each  salvage  operation.  The  fees  are  only  such 
as  will  recoup  the  annual  expenditure,  no  profit  being  aimed  at. 
In  addition  to  the  fee,  each  operation  bears,  naturally,  all  the 
expenses  specially  relating  to  it.  The  Association  has,  of  course, 
on  its  staff  sea-captains  and  engineers  of  long  experience  in 
salvage  work — for  some  years  including  a  retired  naval  officer  of 
flag  rank — and  is  more  or  less  in  touch  with  the  professional 
divers  and  salvage  contractors  everywhere. 

Salvage  Distribution 

We  have  glanced  at  the  possibilities  of  the  salvage  process, 
but  how  about  the  distribution  of  the  salvage  proceeds  amongst 
the  parties  concerned  ?  Imagine  such  a  case  as  this :  A  ship 
wrecked  and  broken  up.  Salvage  operations  affecting  the  ship's 
equipment  and  the  cargo — first  at  a  rate  of,  say,  20  per  cent,  on 


SALVAGE    DISTRIBUTION  139 

the  results,  then  40  per  cent,  when  the  work  became  more  difficult, 
and  then,  say,  80  per  cent,  when  it  became  unremunerative. 
Some  of  the  cargo  has  been  opened  and  dried  on  the  spot,  some 
sent  home  as  it  was.  Some  has  been  sold  on  the  ground, 
some  at  the  nearest  market,  some  sold  as  it  was,  in  England, 
some  re-conditioned  and  sold,  some  re-shipped.  Some  of  the 
cargo  identifiable  by  marks,  some  not.  Documents  for  everything, 
all  verified  or  certified,  either  by  Lloyd's  agent  or  other — a  whole 
truck-load  of  documents.  These,  on  completion,  are  handed  over 
to  a  professional  average  adjuster  to  be  sorted  out  and  classified, 
and  issued  in  the  form  of  an  apportionment  commonly  known 
as  a  "  Salvage  Statement."  In  this  huge  work  parallel  columns 
after  parallel  columns  are  necessary,  to  provide  for  the  various 
circumstances.  The  charges  are  all  enumerated  at  the  left,  and 
their  amounts  carried  into  the  column  to  which  they  relate.  They 
are  thus  analysed  and  debited  each  to  the  class  of  interests  or  to 
the  special  interest  to  which  they  properly  refer.  Then  similarly 
with  the  sale  proceeds.  These  also  are  set  out  in  detail  to  the 
left,  and  the  proceeds  are  similarly  carried  to  their  proper  columns. 
Finally,  with  the  aid  of  the  ship's  manifest,  each  bill  of  lading  is 
set  out  separately,  with  the  name  of  the  person  regarded  as  the 
holder,  and  the  proceeds  or  share  of  proceeds  attaching  to  each 
shipment  are  shown,  less  the  share  of  the  general  salvage  charges 
and  any  special  charges  which  may  attach  to  them.  The  exact 
net  sum  attaching  to  each  interest  is  thus  arrived  at  and  is  paid 
over  to  the  persons — mainly  underwriters — severally  entitled. 
Needless  to  observe  that  such  work  requires  great  experience 
and  skill  and  that  it  is  highly  paid  for,  the  adjusters'  fee,  the  cost 
of  printing  (perhaps  of  many  copies  of  the  book),  and  all  incidental 
charges  being  carried  into  the  expenses  before  the  columns  are 
closed.  Probably  meanwhile  all  the  sale  proceeds  will  have  been 
paid  in  to  a  special  account  in  joint  names — perhaps  of  the 
adjusters  and  the  Salvage  Association  or  of  other  approved 
societies  or  persons.  In  some  cases  payments  "  on  account " 
will  be  made  pending  completion  of  the  adjustment.  These 
payments  practically  all  go  to  the  underwriters,  who  post  them 
up  in  their  books  opposite  to  the  entry  of  the  payment  for  the 
loss. 


I40  SALVAGE    DISTRIBUTION 

WMiencver  a  loss  occurs  invcjlvinj;  loss  of  life,  and  in  many 
other  cases,  the  Board  of  Trade  hold  an  enquiry,  and  information 
upon  the  facts  thus  ascertained  goes  to  increase  the  general 
knf)\vlcdge  and  exj:)ericncc  and  so  to  make  for  greater  safety. 


SALVAGK 

Owing  either  to  the  poverty  of  the  language  or  to  our  own 
slovenliness  we  not  infrequently  use  one  and  the  same  word  in 
two  different  or  even  opposite  senses.  Who  can  say,  for  example, 
whether,  without  the  context,  "insurer"  means  the  underwriter 
who  grants  a  policy  or  the  property-owner  who  pa)'s  for  it? 
Whether  "  freight "  means  the  reward  for  carrying  cargo,  or  the 
cargo  which  is  carried  ?  And  so  with  salvage  ;  for  here  we  may 
mean  either  the  property  which  is  salved  or  the  reward  due  to 
him  who  salves  it.  Obviously,  under  our  single  heading,  there- 
fore, we  can  consider  both.     Let  us  take  then,  first, 

Property  Salved 

First  it  is  to  be  noted  that  nothing  can  legally  come  under 
the  head  of  maritime  salvage  unless  it  be  within  the  strict  defini- 
tion laid  down  in  the  Merchant  Shipping  Act — namely,  a  ves.sel 
or  wreck  or  any  of  her  apparel  or  cargo.  Such  property  can  be 
"  salved  "  collectively,  or  any  portion  of  it  separately,  either  as 
"  flotsam  ",  that  which  is  washed  overboard  or  out  of  a  ship,  and 
floats  ;  or  "  jetsam  ",  that  which  is  jettisoned  or  thrown  overboard ; 
or  "  lagan  ",  that  which,  apparently,  is  thrown  overboard,  to  lie 
sunk,  its  position  being  marked  b)'  a  buo}-.  There  are  various 
legal  decisions  interpreting  the  Act,  but  all  of  them,  of  course,  are 
strictly  governed  by  the  Act.  The  object  of  such  litigation  has 
presumably  in  each  case  been  to  prove  that  the  particular 
property  on  which  salvage  was  claimed  or  refused  was  or  was 
not  within  the  definition  of  the  Act.  One  of  the  more  recent 
and  interesting  of  these  cases  is  that  of  the  *'  Gas  Float  Whitton 
No.  2."  This  was  a  floating  light-beacon,  without  crew,  which 
was  moored  off  the  mouth  of  the  Humber.  Two  local  punt- 
gunners    found    the   vessel    adrift.     They  smothered    the   light. 


SALVAGE  141 

towed  the  craft  ashore  and  claimed  salvage.  Now  let  it  here  be 
remarked  that  if,  apart  from  statutory  provisions,  a  man  chooses 
unasked  to  risk  himself  or  his  property  in  preservation  of  somebody 
else's  goods — as,  if  he  stops  a  runaway  horse  and  cart  from 
dashing  into  a  river,  or  saves  property  from  burning  premises — he 
does  this  at  his  own  risk  and  without  imposing  any  legal  obliga- 
tion on  the  owner  of  the  property  preserved.  If,  however,  the 
law,  as  in  the  case  of  certain  marine  property,  gives  him  a  legal 
right  to  compensation,  the  case  is  on  another  footing.  The 
question  in  the  Gas  Float  case  was  whether  or  not  the  Act  gave 
the  puntsmen  any  legal  right  to  claim  salvage.  The  beacon  was 
50  ft.  long,  20  ft.  beam,  bow-shaped  at  both  ends,  provided  with 
a  man-hole  and  worth  ^600.  The  case  was  tried  in  four  Courts, 
beginning  with  the  Hull  County  Court,  in  which  the  puntsmen, 
claiming  ;^6o  salvage  were  awarded  and  indignantly  refused  the 
sum  of  £1  5.  Then  to  the  Admiralty  Court,  then  to  the  Court  of 
Appeal,  then  to  the  House  of  Lords.  The  Lords  held,  decidedly, 
that  the  property  was  neither  ship  nor  cargo  (though  she  was 
full  of  gas)  and  was  therefore  not  within  the  Act :  consequently, 
that  its  recovery  gave  no  right  to  salvage. 

Salvage  Award 

Now  let  us  take  a  case  plainly  within  the  Act — a  case,  for 
example,  in  which  a  vessel,  broken  down,  is  towed  into  safety — 
either  a  simple  uneventful  towage  or  one  performed  in  the  face 
of  difficulty  and  danger,  and  at  the  risk  of  the  salving  vessel  and 
all  on  board  her.  Or  the  case  of  a  ship  hard  and  fast  aground, 
in  a  more  or  less  dangerous  position — with,  possibly,  serious  risk 
to  the  would-be  salvors  and  their  ship.  The  Act  provides  that 
when  salvage  services,  as  defined,  are  rendered,  a  reasonable 
payment  shall  be  due  to  the  salvors.  If  in  a  given  case  the  two 
parties  concerned  cannot  by  arbitration  or  otherwise  arrive  at  an 
agreement,  it  will  remain  for  the  Admiralty  Court  to  fix  an 
award  based  on  the  Court's  view  of  the  facts.  The  amount  of 
this  award  will  ordinarily  be  a  lump  sum  which,  of  course,  will 
be  based  in  part  on  the  nature  or  value  of  the  services  rendered 
and  in  part  on  the  value  of  the  property  salved.     Ordinarily, 


142  SALVAGE 

also,  the  Court  ;il locates  a  pro|)()rti()n  to  the  salvuig  officers  and 
crew.  There  is  apparently  no  law  ( >i  rule  governing  such  allocation, 
but  in  many  or  most  cases  (jrobahl)'  about  one-fourth  of  the  total 
award  will  go  to  the  officers  and  crew  and  three-fourths  to  the 
shipowners  whose  property  rendered  service  and  ran  a  risk  in  doing 
so.  In  cases  where  the  efforts  of  the  officers  or  crew  or  certain 
of  them  ha\e  been  specially  meritorious,  they  will  probably  be 
considered  speciall)'.  And,  similarly,  if  the  salving  vessel  shall 
have  been  of  special  \  alue  or  at  prejudice  b)-  the  loss  of  time — 
as,  for  example,  in  the  case  of  a  mail  steamer — or  shall  ha\e  run 
special  risk  or  exhibited  extraordinary  skill,  the  Court  will  take 
such  factors  into  consideration  in  fixing  the  award. 

When  life  has  been  imperilled  and  is  saved  as  well  as  property, 
it  is  the  practice  of  the  Admiralt}-  Court  to  assess  the  salved 
property  for  life-salvage,  and  this,  irrespective  of  whether  the 
property  and  lives  were  saved  by  the  same  parties  or  whether 
the  life-salvors  acted  independently. 

In  the  case  of  salvage  effected  or  salvage  services  rendered 
by  one  of  H.M.  ships,  no  claim  is  made  in  respect  of  the  services 
rendered  by  the  .ship,  as  distinguished  from  the  officers  and  crew. 
Consequently,  this  reduces  by  about  three-fourths  the  amount 
which  would  be  awarded  in  similar  circumstances  if  the  ship  of 
war  had  been  a  merchant  vessel.  As  regards  the — assumed — 
remaining  one-fourth  to  be  credited  to  the  services  of  the  war-ship's 
company,  it  might  or  might  not  be  recoverable.  The  officers  are 
entitled  to  claim  for  such  services,  but  only  with  the  consent  of 
the  Admiralty,  in  writing,  such  consent  to  be  previously  obtained. 
And  this  consent  will  not  be  given  in  unimportant  cases.  If  the 
services  be  to  a  hired  transport,  no  salvage  can  be  claimed ;  nor 
for  quelling  a  mutiny  unle.ss  this  shall  have  been  at  personal 
hazard,  these  .services  being  within  the  scope  of  public  duty. 

Since  the  above  was  written  a  Naval  Salvage  suit  has  been 
before  the  Court.s — the  first  for  a  quarter  of  a  centurj-.  The 
case  was  one  in  which  H.M.S.  Melpomene  had  salved  the 
s.s.  Domira,  31 12  tons  gross,  coal  cargo,  stranded  in  May  191 2  in 
the  Gulf  of  Mexico.  The  value  of  the  "Domira"  (?  including 
her  cargo)  is  given  as  ^17,000.  The  judgment  will  be  of 
interest : 


GENERAL   AVERAGE  143 

The  learned  President  in  the  course  of  his  judgment  said  that  the  salvage 
services  were  rendered  by  the  commander,  officers,  and  crew  of  his  Majesty's 
ship  Melpomene,  and  they  had  been  authorized  by  the  Admiralty  to  take 
these  proceedings.  It  did  not  often  happen  in  that  Court  that  a  claim  was 
made  by  a  State-owned  vessel,  and  it  appeared  from  what  Mr  Bateson  said 
that  a  quarter  of  a  century  had  passed  since  there  was  a  case — the  Cargo  ex 
Ulysses  (13  P.D.,  205).  It  was  clear  that  no  remuneration  could  be  given  in 
respect  of  the  value  of  the  salving  cruiser.  She  belonged  to  the  State  and 
the  vState  made  no  claim.  Certain  other  services — such,  e.g.,  as  supplying 
water — were  obviously  services  which  any  of  his  Majesty's  ships  would  be 
bound  to  render.  His  Lordship  had  to  ask  himself  what  was  the  fair  re- 
muneration for  the  work  done  by  the  commander,  officers,  and  crew  outside 
their  ordinary  duties.  He  thought  he  was  entitled  to  take  into  account  that 
the  commander  was  running  some  risk  of  incurring  possible  disfavour  with 
the  Admiralty.  For  instance,  supposing  that  in  performing  the  services 
damage  was  occasioned  to  the  Melpomene,  the  Admiralty  might  call  upon 
him  to  explain  his  conduct,  and  certain  disagreeable  consequences  might 
follow.  The  work  done,  as  was  to  be  expected,  was  done  readily,  efficiently, 
and  skilfully.  There  had  been  great  risk  of  total  loss,  and  the  services  of 
the  commander,  officers,  and  crew  entitled  them  to  a  considerable  award. 
He  awarded  ^{^2500. 

Then  there  is  the  converse  case,  in  which  salvage  services  are 
rendered  by  a  merchant  vessel  to  one  of  H.M.  ships.  There  is 
apparently  no  law  relating  to  such  a  case.  The  Admiralty 
admit  no  legal  liability,  but  as  an  act  of  grace  deal  with  the  facts 
upon  their  merits.  Almost  certainly  the  salvors'  claim  will  prove 
capable  of  amicable  settlement,  but  the  Admiralty,  reserving  all 
rights  and  privileges,  may  in  case  of  need  agree  to  refer  the  case 
to  arbitration. 

General  Average 

Look  at  almost  any  bill  of  lading,  and  you  will  find  in  it  these 
words  "...with  average  and  primage  as  accustomed,"  or,  perhaps 
simply  "...with  average  as  accustomed."  As  to  primage,  we 
can  dismiss  it  in  a  few  words.  Anciently,  the  captain  used  to 
receive,  over  and  above  the  freight  due  to  the  owners,  a  personal 
"  tip "  for  his  services,  and  this  was  called  primage.  Later,  by  a 
process  not  without  precedents,  he  had  to  receive  it  as  agent  for 
the  owners.  Next,  the  freight  was  calculated  to  include  it.  Then 
it  became  obsolete,  or  nearly  so.  It  may  and  probably  does  still 
continue  to  be  charged  in  certain  trades  as  a  sort  of  percentage 
on  or  addition  to  the  freight ;  but  it  has  long  ceased  to  be  a 


144  GENERAL   AVERAGE 

necessary  or  norma!  char^^e,  and  thoui^h  hills  of  ladin^^  ccjntinue 
to  make  mention  of  it,  the  mention  is  in  most  cases  purely  a 
survival.  Hut  when  a  term  has  from  times  remote  appeared 
invariabl)'  in  a  stereotyped  mercantile  document  nobody  likes  to 
drop  it  when  no  lon^jer  apj)licable,  for  fear  that,  in  omitting  it, 
some  unforeseen  and  undesircd  interpretation  may  be  given  to 
some  other  phrase  which  the  law  may  discover  should  be 
identified  or  read  in  connection  with  it.  Let  us  then  dismiss 
primage  and  consider  solely  general  average.  And,  first,  what 
is  "average".''  Average,  in  this  connection,  is  damage,  loss, 
hurt,  charges:  .some  abnormal  burden  falling  on  sea-borne 
property,  whether  ship  or  cargo.  The  term  is  in  continual  u.se 
in  marine  insurance  circles  as  well  as  in  ocean  commerce  generally. 
But  it  may  mean,  in  such  references,  either  "  general  average  "  or 
"  particular  average  ",  the  latter  being  purely  a  marine  in.surance 
term.  The  meaning  of  "  average  ",  then,  being,  broadly,  damage 
or  charge.s,  what  is  the  difference  between  "  general  average  "  and 
"  particular  average  "  ?  The  distinction  is  fundamental,  general 
average  being  average  which  is  deliberately  and  intentionally 
cau.sed  or  incurred,  while  particular  average  is  average  which  is 
purely  accidental.  For  example,  a  mast  cut  away  to  right  a  ship 
with  a  heavy  list  and  in  imminent  danger  of  capsizing  altogether ; 
cargo  thrown  overboard  to  lighten  a  vessel  which  is  accidentall}- 
on  the  ground  ;  an  anchor  and  cable  slipped  to  avoid  imminent 
peril,  as  of  the  vessel  being  driven  ashore  or  being  run  into  ; 
damage  to  cargo  by  pouring  water  down  the  hold  to  put  out 
a  fire ;  the  cost  of  shore  labour  to  pump  a  leaky  ship,  arrived  in 
harbour  with  an  exhausted  crew  ;  an  agreed  sum  paid  for  towing 
a  vessel  out  of  a  dangerous  position  ;  all  these  are  familiar 
instances  of  general  average.  And  why  "general".'  Because  it 
is  average  affecting  the  whole  adventure  indiscriminately  and 
generally :  average  incurred  voluntarily  in  a  moment  of  emergenc)' 
to  save  from  loss  the  whole  adventure  generalh'.  Deliberate 
intention  is  the  key-note. 

Particular  average  has  as  its  key-note  accident.  A  mast 
breaking  off  under  pressure  of  the  storm  ;  anchor  and  cable  lost 
b)-  the  accidental  parting  of  the  cable ;  damage  to  cargo  by 
leakage  or  by  fire ;    these  are  familiar  instances  of  particular 


GENERAL   AVERAGE  145 

average.  Accident  is  the  key-note  :  the  loss  or  damage  attaches 
solely  to  the  owner  of  the  particular  (or  private)  property  involved. 
General  average,  on  the  contrary,  attaches  to  and  has  to  be  borne 
pro  rata  by  every  interest  involved — by  the  property  generally. 

And  now  we  get  back  to  our  bill  of  lading,  with  its  "  average 
as  accustomed."  The  "  average  "  thus  referred  to  is  said  originally 
to  have  meant  charges — e.g.  towage — to  be  divided  generally ; 
but  no  doubt  it  covers  general  average.  Owing,  however,  to  the 
modern  adoption  of  special  rules  of  adjustment,  the  bill  of  lading 
makes  further  mention  of  the  subject — the  average,  if  any,  is  to  be 
adjusted  "  according  to  York-Antwerp  Rules."  This  was  a  code 
of  rules  framed  for  international  adoption  at  a  meeting  of  the  In- 
ternational Law  Association  at  York  in  1864,  revised  at  Antwerp 
in  1877,  and  reduced— or  enlarged — to  its  present  form  at  Liver- 
pool in  1890.  "  General  Average*  was  presumably  the  first  form  of 
marine  insurance.  In  the  early  days  when  merchants  travelled 
with  their  own  merchandise  and  a  jettison  of  somebody's  cargo 
became  necessary,  the  owner's  consent  to  the  sacrifice  would 
be  obtained  on  a  promise  on  the  part  of  his  co-adventurers 
that  his  loss  or  '  average '  should  eventually  be  divided  amongst 
them  all,  generally.  And  later,  when  bills  of  lading  were  made 
out,  this  principle  of  general  compensation,  which  had  meantime 
become  a  rule  of  the  sea,  was  expressly  recognised  in  the  contract 
of  carriage.  The  still  later  invention  of  marine  insurance  against 
losses  and  averages  should  obviously  have  rendered  unnecessary 
a  continuance  of  the  system  of  compensation  amongst  the 
adventurers  themselves.  But  unfortunately  everybody  did  not 
insure,  and  those  who  were  not  insured  would  naturally  insist  on 
having  the  old  system  of  mutual  contribution  made  a  part  of  the 
common  contract  of  carriage.  The  system  of  insurance,  old  as 
it  is  to-day,  was,  like  other  beneficial  systems,  at  one  time  new, 
and  as  such  would  naturally  be  regarded  with  suspicion  or  even 
contempt.  The  fine  old  merchant  banker,  whose  father  and 
whose  grandfather  had  run  their  own  risk  of  accidental  loss  or 
damage,  would  look  upon  the  new-fangled  plan  as  a  mean  device, 
good  enough  for  the  struggling  trader  but  altogether  beneath  the 

'  Quotation  from  "  The  Reform  of  General  Average  ;  a  Paper  read  by  permission 
of  the  Committee  at  Lloyd's  on  9th  May  1894  "  by  the  author. 

o.  10 


146  GENERAL    AVERAGE 

dignity  of  the  merchant  prince.  Insurance  had  to  fight  its  way, 
and  by  the  time  it  had  Ijecome  common  the  general  average 
send-round-the-hat  system  had  become  such  a  necessary  incident 
of  the  contract  of  marine  carriage  that  equally  as  a  matter  of 
course  it  became  engrafted  into  the  system  of  marine  insurance, 
under  which,  however,  it  was  ob\i(JUsly  superfluous.  No  man, 
whether  insured  or  not,  bore  his  own  general  average  loss,  and 
every  man  bore  a  part  of  that  sustained  b}'  a  co-adventurer. 
And  so,  till  1868,  it  remained.  If  a  man's  property  was  sacrificed 
he  never  dreamed  of  going  to  his  underwriter  for  compensation. 
He  sent  round  the  hat  first,  and  then  he  called  upon  his  under- 
writer for  the  sum  representing  his  own  share  of  the  loss.  But 
in  1868  one  Dickinson  declined  to  allow  mere  usage,  however 
ancient,  to  come  between  him  and  what  he  conceived  to  be  his 
legal  rights  under  the  marine  policy.  His  property  had  been 
jettisoned  and  he  insisted  on  being  directly  paid  for  it.  The 
underwriter,  said  he,  could  afterwards  make  a  collection  from  the 
other  cargo-owners,  if  he  liked.  To  the  astonishment  and  indig- 
nation of  underwriters  the  Court  said  that  Dickinson  was  right, 
and  the  case  of  Dickinsoti  v.  Jardine  has  tingled  in  the  ears  of 
underwriters  ever  since.  Now  one  would  have  thought  that  the 
immediate  effect  of  this  decision  would  have  been  that  the 
marine  offertory-bag  would  have  ceased  any  longer  to  go  its 
round,  and  that  each  underwriter  would  have  been  content  to 
regard  as  final  any  general  average  loss  falling  upon  him,  preci.sely 
as  he  would  so  regard  an  accidental  total  loss  or  a  particular 
average  loss.  Old  usages,  howexer,  die  hard,  and  to-day,  the 
merchant  having  been  paid  by  his  underwriter  for  the  property 
sacrificed,  the  underwriter  relies  upon  the  shipowners  to  collect 
the  contributions  due — practically  from  his  co-underwriters — in 
respect  of  the  rest  of  the  cargo,  and  when  he  has  received  it, 
thankfully  posts  it  into  his  books  as  a  '  Salvage  '." 

Such  being  the  facts,  whatever  the  origin,  the  effect  of 
"average  as  accustomed"  in  the  bills  of  lading  will  be  clear 
enough.  The  words  bind  shippers  and  shipowners  alike  to  the 
ancient  usage.  The  object  of  the  little  treatise  from  which  the 
above  is  an  extract  was  to  call  attention   to  the  growth,  the 


GENERAL   AVERAGE  147 

expense,  the  delays  and  inconvenience  and,  in  view  of  insurance 
and  the  legal  decision  cited,  to  the  modern  superfluity  of  the 
ancient  system.  The  object  was  not  to  "abolish"  but  to  reform 
the  system,  only  to  the  limited  but  very  important  extent  of 
excluding  voluntary  sacrifices  from  general  average  and  letting 
them  fall  in  each  case  on  the  owners  of  the  particular  property 
sacrificed — in  other  words,  on  their  underwriters.  This  would 
effect  a  reduction  assessed  at  12  per  cent,  (according  to  a  New- 
York  expert  writer,  now  1 5  per  cent.)  as  the  cost  of  working  and 
applying  the  system,  and  would  save  endless  circumlocution  and 
delay.  Even  if  its  eventual  decease  be  sure,  however,  the  ancient 
system  is  still  in  full  and  flourishing,  if  burdensome  and  costly, 
vigour.  But  perhaps  a  glimmer  of  the  light  which  precedes  the 
dawn  may  be  seen  in  the  bill  of  lading  discus.sed  on  p.  83,  in  which 
the  following  provision  will  be  noticed  in  substitution  for  the 
ancient  "  average  and  primage  as  accustomed,"  viz. : 

"  General  average  loss  to  be  borne  by  those  on  whom  it  has 
fallen,  unless  statements  are  required  in  writing  by  interests 
which  would  be  entitled  to  receive  in  the  aggregate  per  Adjuster's 
estimate  not  less  than  £200  net."  The  reasonableness  of  this 
will  be  understood  when  we  remember  that  the  cost  of  "  adjusting" 
or  stating  the  general  average — fee,  printing  and  so  on,  alone — 
might  on  occasion  easily  amount  to  a  great  deal  more  than  the 
sum  mentioned.  But  the  system,  entirely  unnecessary  as  it  is,  is 
surely  destined  eventually  to  break  down  under  its  own  increasing 
weight.  It  might  have  been  beneficial  and  useful  enough  in  the 
old  argosy  and  pre-insurance  days,  but  in  these  days  when  a 
cargo  may  make  up  a  dozen  or  a  score  of  train-loads  of  mixed 
goods,  and  all  of  them  insured,  its  burden  must  be  as  obvious  as 
its  superfluity. 

Perhaps  the  most  frequent  and  certainly  the  most  serious 
cases  of  general  average  are  those  arising  out  of  fire.  A  huge 
.steamer  laden  with  general  cargo  arrives  or  puts  in  with  fire  or 
having  suffered  from  fire  in  one  of  her  holds.  It  may  be  and 
very  commonly  is  drowned  out  by  flooding  the  hold,  more  or 
less  completely,  but  possibly  the  pressure  on  the  bulk-heads 
may  cause  them  to  give  way  and  flood  adjoining  holds,  or 
they    may   get    red-hot   and    so   extend    the   fire.      Eventually, 


148  GENERAL    AVERAGE 

however,  the  cargo  is  all  got  out,  some  wet,  some  dry,  some  wet 
and  charred,  some  charred  and  not  wet.    Now,  the  water-damage 
to  cargo  wet  and  not  charred  is  clearly  general  average  :    the 
damage  was  voluntarily  and  deliberately  incurred  at  a  moment 
of  common    peril    for  the  general   safety.     But    if  a   particular 
package    was    already    on    fire,    then,   so    far    as    such    package 
was  concerned,  the  water  was  a  blessing  and  not  a  curse  to  it : 
or,  to  take  another  view,  the  package  being  itself  on  fire  was  a 
cause  of  danger  and  not  therefore  entitled  to  compensation  ;  so 
that  in  such  instances  the  water-damage  will  not  be  included  in 
general  average.     And  of  course  all  damage  by  Fire  (as  distin- 
guished from  Water),  being  accidental,  will  be  particular  average 
and  not  general.     Think  what  all  this  must  necessitate  in  survey- 
ing,  classifying,    certificating,  and    sorting   in   the    case   of  any 
big  general  or  mixed  cargo.     Then  the  drying  and  re-condition- 
ing   expenses    and    sale   charges    will    have,    of   course,    to   be 
similarly  analysed  and  allocated.     Then,  eventually,  the  whole 
cartload    or   waggon-load    of  papers    will    have    to   be   handed 
over   to   a   firm    of  Average  Adjusters,  and  dealt   with    much 
in  the  same  way  as  in  the  case  of  a  Salvage  Apportionment 
(P-   139)-     Two,  three  or  even   four  years   may  elapse   between 
the  date  of  the  average  and  the  date  of  the  issue  of  the  adjust- 
ment.    And  the  cost !     A  general  average  statement  was  issued 
not  long  ago — quite  possibly,  cheap  at  the  price — for  which  the 
adjustment  fee  was  3500  guineas,  and  printers'  bill  £610,  with 
incidental   fees  and  charges  to  who  can  say  how  much  more ! 
The  "  average "  itself  was  only  about  4^  per  cent.,  and  it  took 
about  2\  years  to  adjust.    The  underwriters  had  to  pay,  pro  rata 
and  collectively,  all  the  general  average  damage  plus  the  costs  of 
ascertaining,   certifying  and   adjustment ;    whereas   if  each   had 
borne  his  own  loss,  some  might  have  had  to  pay  heavily,  some 
a  little  and  others  nothing — in  the  long  run  everybody  coming 
out  the  same,  but  always  less  the  extra  charges.     Of  course,  if 
all  the  losses  or  damages  were  treated  separately  as  particular 
averages,  without  any  reference  to  special  nature  of  the  damage 
in  each  case,  there  might  still  remain  to  be  paid  charges  of  a 
general  nature.     For  example,  the  extra  cost  of  discharging  and 
sorting  cargo  sodden,  broken  and  perhaps  unidentifiable  would 


GENERAL   AVERAGE  149 

be  a  general  charge,  but  such  collective  results  of  a  general 
average  act  could,  in  these  days,  be  easily  covered  by  insurance 
at  small  cost  or  by  mutual  insurance  amongst  the  shipowners. 
Anyway,  they  are  but  a  piccolo  to  the  full  band. 

Passengers'  baggage  occupies,  in  law,  no  privileged  position 
as  regards  general  average,  but  until  recently  it  had  always  been 
left  out  of  the  assessment.  For  one  thing,  its  value  was  compara- 
tively inconsiderable,  and  on  the  other  hand  the  irritation  of  the 
passengers  had  to  be  reckoned  with.  Of  late  years,  however, 
passengers'  property  and  effects  have  become  so  valuable  that 
the  question  has  several  times  been  raised.  The  sentence 
extracted  above  from  our  bill  of  lading  has  added  to  it  these 
words :  "  but  passengers  shall  not  pay  or  receive  any  general 
average  contribution  in  respect  of  luggage  or  personal  effects." 
In  a  recent  case  in  which  baggage  was  brought  into  the  adjust- 
ment, the  great  mail  line  concerned,  if  memory  may  be  trusted, 
took  the  passengers'  contribution  on  itself  And,  had  it  not 
done  so,  a  great  and  indignant  outcry  from  the  passengers,  called 
upon  to  fill  up  complicated  forms  and  to  pay  deposits,  would 
certainly  have  had  to  be  faced. 

If  the  general  average  is  attributable  to  causes  for  which  the 
shipowners  can  be  held  responsible,  then,  prima  facie,  and  subject 
to  the  protection  of  the  "  negligence  clause  "  (p.  87)  so  far  as  it 
may  extend,  they  are  debarred  from  recovering  in  general  average. 
The  reference  to  general  average  in  our  bill  of  lading  therefore 
goes  on  to  say  this :  "  If  the  owner  of  the  ship  shall  have 
exercised  due  diligence  to  make  said  ship  in  all  respects  sea- 
worthy and  properly  manned,  equipped  and  supplied,  it  is  hereby 
agreed  that  in  case  of  danger,  damage  or  disaster  resulting  from 
fault  or  negligence  of  the  pilot,  master  or  crew  in  the  navigation 
or  management  of  the  ship,  or  from  latent  or  other  defects,  or 
unseaworthiness  of  the  ship,  whether  existing  at  time  of  shipment 
or  at  the  beginning  of  the  voyage,  but  not  discoverable  by  due 
diligence,  the  consignees  or  owners  of  the  cargo  shall  not  be 
exempted  from  liability  for  contribution  in  general  average  or 
for  any  special  charges  incurred,  but,  with  the  shipowner,  shall 
contribute  in  general  average,  and  shall  pay  such  special  charges, 
as  if  such  danger,  damage  or  disaster  had  not  resulted  from  such 


ISO  GENERAL   AVERAGE 

fault,  negligence,  latent  or  other  defect  or  unseaworthiness." 
This,  primarily,  is  to  get  round,  as  nearly  as  can  be  managed, 
the  implied  obligation  to  provide  a  seaworthy  ship :  that  is  to 
say,  the  cargo  shippers  shall  not  be  able,  or  shall  be  able  only  in 
extreme  cases,  to  set  up,  as  a  defence  to  a  claim  for  general 
average,  the  unseaworthiness  or  alleged  un.seaworthiness  of  the 
ship. 

General  Average  is  now  almost  invariably  adjusted  by  the 
"York-Antwerp  Rules",  the  optional  international  code  already 
mentioned,  the  code  being  commonly  made  obligatory  by  special 
words  in  the  shipping  contract. 

But  when  a  ship  arrives,  in  common  parlance,  "  under  average," 
the  shipowners  are  not  going  to  put  themselves  in  the  position 
of  having  delivered  all  the  cargo  first  and  then  having  to  collect 
all  the  contributions  perhaps  several  years  afterwards.  They 
therefore,  reasonably  enough,  protect  themselves  by  collecting 
deposits  before  or  on  delivery,  and  obtain  in  addition  the  signature 
of  the  consignees  to  what  is  known  as  an  "  Average  Bond." 

General  Average  Bond 

A  ship  arrives,  say,  with  her  cargo  damaged  b)'  water  used  to 
extinguish  a  fire  ;  or  she  has  had  to  incur  expenditure  for  special 
emergency  assistance  ;  or  with  damage  to  her  machinery  incurred 
by  working  the  engines  when  the  ship  was  aground,  to  get  her 
off — a  general  average  sacrifice,  inasmuch  as  it  is  not  a  ship's 
business  to  work  her  engines  when  she  is  aground,  or  at  any  rate 
this  is  a  misuse  of  them.  Let  us  assume,  however,  simply  that 
the  ship  has  arrived  "under  average":  it  makes  no  difference 
whether  the  sacrifice  shall  have  affected  the  ship  or  the  cargo  or 
whether  it  is  a  general  average  expenditure  on  behalf  of  both  ; 
all  have  got  to  contribute.  An  average  adjuster  is  consulted — 
probably  has  been  consulted  in  advance  of  the  ship's  arrival. 
He  has  before  him  on  one  side  the  ship's  manifest,  which  is 
a  detailed  list  of  her  cargo,  and  on  the  other  a  statement  of  the 
expenditure  or  sacrifices  so  far  as  they  are  known  or  can  be 
approximately  conjectured.  If  the  average  is  water  damage  to 
the  cargo,  it  can  only  be  guessed  at  and  it  will  be  estimated 


GENERAL  AVERAGE  BOND        151 

highly.  Let  us  say,  then,  that  the  sound  value  of  the  cargo, 
when  worked  out,  is  likely  to  be  about  i^200,000  and  that  the 
ship  is  worth  ;^  100,000.  The  aggregate  value  of  the  contributory 
interests  is  thus  ^^300,000.  The  expenses  or  sacrifices  may 
perhaps  be  estimated  to  amount  together  to,  say,  i^  12,000.  To 
be  on  the  safe  side  the  figure  may  be  taken  at  ^15,000,  which  is 
5  per  cent.  A  consignee,  therefore,  having  cargo  calculated  to  be 
worth  ;i^iooo  will  have  to  pay  a  general  average  deposit  of  ^50 
or  5  per  cent.  (In  cases,  it  may  be  20  per  cent,  or  30  per  cent.) 
His  ;^50  will  be  paid  into  the  Average  Trust  Fund,  and  a  special 
receipt  given  to  him.  The  ^^50  will  be  repaid  to  him  by  his 
underwriters,  to  whom  he  will  endorse  over  the  Trust  Fund's 
receipt,  so  that  the  underwriters,  on  completion  of  the  average 
adjustment,  will  be  entitled  to  receive  back  the  difference  (there 
is  mostly  a  refund)  between  the  amount  actually  due  from  the 
owner  of  the  goods  and  the  ;^50  paid  as  a  deposit  against  it. 

But  still  the  consignee  will  not  be  able  to  get  delivery  yet. 
The  ^50  may,  after  all,  prove  to  be  insufficient.  Then  the 
adjustment  cannot  be  made  up  until  each  consignee  has  handed 
in  the  papers  showing  the  sale  proceeds  of  his  goods  and 
certificates  of  loss,  if  any,  occasioned  by  the  General  Average  Act. 
The  consignee,  therefore,  in  addition  to  paying  his  deposit  has 
to  sign  a  bond  to  the  effect  that  he  will  make  any  further  pay- 
ment which  may  be  due  from  him  on  completion  of  the  adjustment, 
and  that  he  will  also  supply  all  the  information  required  by  the 
adjusters  in  respect  of  his  particular  goods.  Such  a  guarantee 
is  given  in  the  form  of  a  General  Average  Bond. 

General  average  statements  are  drawn  up  and  deposits 
collected  all  over  the  world  in  respect  of  property  largely 
insured  by  British  underwriters.  The  payers  of  the  deposits 
send  the  deposit  receipts  to  the  underwriters  and  obtain  re- 
payment. The  underwriters  then  have  to  watch  for  the  issue  of 
the  average  statement  in  order  to  claim  any  refund  to  which 
they  may  be  entitled.  This  work  can,  however,  be  passed  on  to 
Lloyd's,  as  witness  the  following  notice  in  the  shipping  Press : 

"Refund  of  general  average  deposits. — Special  ar- 
rangements are  made  at  Lloyd's  for  the  collection  of  Refunds 
of  sums  deposited  on  account  of  General  Average,  and  also  for 


152        GENERAL  AVERAGE  BOND 

putting  forward  claims  (or  Loss  of  or  Damage  to  Cargo  recover- 
able in  General  Avera<,fc.  In  the  case  of  Deposits,  all  that  is 
necessary  is  to  forward  the  original  Deposit  Receipts  to  the 
Secretary  of  Lloyd's,  who  will  account  for  the  Refunds  (if  any)  in 
due  course.  As  regards  claims  for  Loss  or  Damage  recoverable  in 
General  Average,  the  Bills  of  Lading,  Invoices,  Survey  Reports, 
Account  Sales,  &c.,  should  be  forwarded." 

Bottomry  Bond 

The  alliterativeness  of  its  title  and  the  enigma  of  its  maritime 
use  together  invest  the  bottomr)'  bond  with  a  sort  of  mysterious 
interest.  At  one  time  and  for  long  it  played  a  highly  important 
part  in  ocean  commerce.  It  may  now,  however,  almost  be  classed 
with  the  dodo  or  the  great  auk.  Under  modern  conditions  there 
is  little  occasion  for  its  use  :  the  submarine  cable,  the  rapid  post 
and  the  world's  banking  facilities  have  together  conspired  against 
and  practically  slain  it.  Till  these  came,  however,  the  world  of 
shipping  could  not  do  without  it.  Let  us  imagine  an  old-time 
case  where  a  sailing  ship  which  had  just  managed  to  keep  her.self 
afloat,  perhaps  under  jury-mast  and  with  torn  canvas,  came  heavily 
into  (say)  Mauritius.  It  might  take  six  months  or  a  year  to  get 
into  communication  with  her  owners,  and  meantime  she  would 
be  in  danger  of  sinking  at  her  anchors  and  with  a  damaged  cargo 
rapidly  deteriorating.  The  obvious  course  must  be  to  get  her 
cargo  out  of  her  at  once,  partly  to  preserve  it  and  partly  in  order 
to  survey  the  damages  to  the  ship.  Then  the  ship  must  be 
re-caulked,  perhaps  new  masts  .set  up  and  a  new  suit  of  sails 
supplied,  the  whole  at  a  cost  perhaps  of  several  thousand  pounds. 
People  on  the  spot  were  used  to  just  such  work  and  made  a 
handsome  living  out  of  it.  Imagine,  then,  the  ship  repaired,  the 
cargo  re-stowed,  and  the  ship  provisioned  for  continuing  her 
voyage.  All  the  work  has  been  done  under  the  captain's  authority, 
with  the  understanding  that  he  will  raise  the  money  required  by 
means  of  a  bottomry  bond,  to  be  executed  in  favour  of  some 
local  financier  in  the  habit  of  making  similar  advances.  But 
obviously  the  making  of  an  advance  on  the  security  of  a  ship  or 
"  bottom  "  which  might  after  all  never  get  home  must  be  a  very 


BOTTOMRY    BOND  153 

speculative  business,  to  be  paid  for  accordingly.  This  payment 
was  in  the  form  of  a  "  maritime  premium  "  :  if  the  ship  arrived, 
the  debt  and  the  premium  would  be  payable  to  the  holder  of  the 
bond  (which  would  be  sent  home  independently  to  the  lender's 
agent) ;  if  she  did  not  arrive  then  the  lender  would  never  see  his 
money  again.  Consequently  the  maritime  premium  would  be 
high,  25  per  cent.,  30  per  cent.,  or  on  occasion  perhaps  consider- 
ably more.  Say,  however,  that  the  disbursements  were  i^iooo 
and  the  maritime  premium  25  per  cent:  the  bottomry  bond 
would  be  for  ^^1250.  The  instant  the  ship  arrived  the  holder  of 
the  bond  would  be  down  on  her  and  demand  his  £12^0  before 
she  was  allowed  to  break  bulk.  In  cases  where  the  ship  was 
damaged  beyond  repair  the  cargo  could  be  forwarded  in  another 
vessel,  a  similar  bond,  solely  on  the  cargo,  known  as  a  "  Respon- 
dentia Bond  ",  being  given  against  provision  of  the  money  for 
the  process. 

But  times  have  greatly  changed.  The  arrival  of  a  vessel  at 
a  port  of  distress  is  nowadays  instantly  cabled  home  by  Lloyd's 
Agent.  A  copy  of  the  despatch  will  be  at  once  displayed  at 
Lloyd's  and  a  copy  of  it  sent  round  to  all  the  insurance  companies. 
The  Salvage  Association  will  be  put  in  motion,  and  in  a  few  hours 
the  underwriters  will  be  fully  informed  as  to  the  ship's  require- 
ments. A  credit  will  be  opened  with  a  bank  having  a  branch  at 
the  port  of  distress  :  and  that  is  all.  It  may  be  interesting  to  see 
a  copy  of  the  ancient  bond  : 

ilnoU)  all  men  bp  tbesie  flresientsJ 

That  I 

Master  of  the  Ship 
of  the  Port  of 

of  the  burthen  of  tons  or  thereabouts  am  held  and  firmly- 

bound  unto 
of 

in  the  sum  of 

sterling  British  money  to  be  repaid  to  the  said 

his  agent  attorney  executors  administrators  or  assigns  for  which  payment 
I  bind  myself  my  heirs  executors  and  administrators  and  also  bind  and 
hypothecate  the  said  ship  and  the  freight  to  become  due  in  respect  of 
the  voyage  after  mentioned  and  the  cargo  laden  or  to  be  laden  on  the 
said  voyage  firmly  by  these  Presents  sealed  with  my  seal  Dated 

this  day  of  18 


154  BOTTOMRY    BOND 

WHEREAS  the  said  ship  lately  arrived  at 

in   distress   having    sustained    damages    in    the   course   of  a   voyage   from 

to  laden  with 

and  being  in  want  of  repairs  supplies  and  provisions  to  enable  her  to  con- 
tinue her  said  voyage     AND  WHEREAS  the  said 

being  without  funds  or  credit  at  and  urgently  requiring 

the  sum  of  to  pay  for  the  said  repairs  supplies  and 

provisions  and  to  discharge  the  lawful  and  necessary  disbursements  of  the 
ship  at  ,  and  to  release  her  from  her  liabilities  and  to 

enable  her  to  continue  her  voyage  and  having  first  duly  communicated  or 
attempted  to  communicate  with  the  owners  of  the  said  ship  and  of  the  said 
cargo  with  a  view  to  obtain  funds  from  them  was  compelled  to  apply  for  a 
loan  upon  bottomry  of  his  ship  her  cargo  and  freight  AND  WHEREAS 
the  said  who  is  hereinafter  called  the  said 

lender  proposed  and  agreed  to  advance  upon  such  security  the  said  sum  of 
at  a  maritime  premium  of  per  cent, 

for  the  said  voyage  and  the  said  being  unable  to 

procure  such  advance  in  any  quarter  on  more  advantageous  terms  accepted 
the  said  proposal  (with  the  intervention  and  approval  of  the  proper  authorities 
at  )  and  agreed  so  far  as  he  lawfully  could  or  might 

that  the  said  security  should  have  priority  over  all  other  claims  on  the  said 
ship  freight  and  goods  whether  by  himself  or  any  other  person  AND 
WHEREAS  the  said  lender  has  duly  advanced  the  said  sum  in  pursuance 
of  the  said  agreement  NOW  THE  CONDITION  of  the  above  obligation 
is  such  that  if  the  said  do  with  the  said  ship  and  cargo 

duly  prosecute  the  said  voyage  without  unnecessary  delay  or  deviation  and 
do  within  days  after  the  arrival  of  the  said  ship  or  cargo  at 

and  before  commencing  to  discharge  or  deliver  her 
cargo  there  pay  or  cause  to  be  paid  to  the  said  lender  or  to  his  order  or 
assigns  the  said  sum  of  together  with  maritime  premium 

thereon  at  the  rate  aforesaid  making  in  all  the  sum  of 

such  payment  to  be  made  at  the  exchange  of  for 

every  British  pound  sterling.  If  the  said  ship  with  the  said  cargo  shall  duly 
prosecute  her  said  voyage  without  unnecessary  delay  or  deviation  and  shall 
be  by  perils  of  the  sea  lost  in  the  course  of  such  voyage  then  this  obligation 
shall  be  null  and  void  and  the  said  shall  be  released 

from  all  liability  in  respect  of  the  said  sum  of 

PROVIDED  ALWAYS  and  it  is  hereby  agreed  and  declared  that  if  the 
said  ship  shall  by  perils  of  the  sea  as  aforesaid  be  lost  or  so  much  damaged 
as  to  be  unable  to  complete  her  said  voyage  then  if  any  part  of  the  said  ship 
or  cargo  or  of  the  said  freight  shall  be  saved  or  earned  the  above  security  so 
far  as  regards  the  property  saved  or  freight  earned  shall  remain  in  force  and 
the  said  lender  or  his  assigns  shall  be  at  liberty  forthwith  to  enforce  the  same 
against  such  property  and  freight 

PROVIDED  ALSO  and  the  said  loan  is  made  on  the  express  condition 
that  the  said  lender  doth  not  accept  or  take  upon  himself  any  risk  or  liability 
on  the  said  voyage  except  such  as  is  hereby  expressly  mentioned  and  shall 


LLOYD'S   POLICY  155 

not  be  liable  to  contribute  to  or  make  good  any  general  or  particular  average 
loss  or  expenditure  or  other  charges  of  a  like  nature  which  may  happen  to 
or  be  sustained  by  or  incurred  in  respect  of  the  said  ship  or  her  cargo  or 
freight  upon  the  said  voyage  in  consequence  of  perils  of  the  sea  or  otherwise. 

Signed  sealed  and  delivered  by  the  said 
in  the  presence  of 


Lloyd's  Policy 

Lloyd's  policy,  with  no  material  alteration,  is  the  universal 
British  form  of  marine  insurance  policy  ;  and,  more  than  that,  the 
same  form  is  frequently  used  to  cover  risks  in  no  way  connected 
with  ocean  transport.  It  is  an  ancient  and  incoherent  document, 
occasionally  the  subject  of  judicial  remarks  in  the  highest  degree 
uncomplimentary.  But  nobody  minds  this  or  dreams  of  altering 
the  ancient  form,  nor,  one  may  imagine,  is  it  ever  likely  to  be 
altered.  Insurance  experts  know — or  very  often  know — exactly 
what  it  means,  and  with  generations  of  legal  interpretations  hang- 
ing almost  to  every  word,  and  almost  certainly  to  every  sentence, 
in  it,  it  would  be  highly  dangerous  to  tamper  with  it.  Its  defects 
and  insufficiencies  for  modern  needs  are  got  over  by  clauses : 
clauses  written  in  it,  stamped  on  it,  gummed  on  it ;  clauses  some- 
times having  no  relation  to  the  particular  insurance,  but  stamped 
or  gummed  on  it  all  the  same  as  portions  of  a  batch.  To  the 
antiquarian,  quite  a  delightful  document.  A  copy  of  it  is  printed 
below. 


3$f  it  fenobn  tbat 


S.G. 


£ 


as  well  in  own  Name,  as  for  and  in 

the   Name   and    Names  of  all  and   every   other 
-  Person  or  Persons  to  whom  the  same  doth,  may, 
{No.  )  or  shall  appertain,  in  part  or  in  all,  doth  make 

Assurance  and  cause  and  them 

and  every  of  them  to  be  insured,  lost  or  not  lost, 
at  and  from 

upon  any  kind  of  Goods  and  Merchandises,  and  also  upon 
the  Body,  Tackle,  Apparel,  Ordnance,  Munition,  Artillery 
Boat  and  other  Furniture,  of  and  in  the  good  Ship  or 


156  LLOYD'S    POLICY 

Vessel  called  the 

whereof  is   Master,  under  (lod,  for  this  present   Voyage 

or  whosoever  else  shall  go  for  Master  in  the  said  Ship, 
or  by  whatsoever  other  Name  or  Names  the  said  Ship, 
or  the  Master  thereof,  is  or  shall  be  named  or  called, 
beginning  the  Adventure  upon  the  said  Goods  and  Mer- 
chandises from  the  loading  thereof  aboard  the  said  Ship 

upon  the  said  Ship,  &c., 

and  shall  so  continue  and  endure, 
during  her  Abode  there,  upon  the  said  Ship,  &c.  ;  and 
further,  until  the  said  Ship,  with  all  her  Ordnance,  Tackle, 
Apparel,  &c.,  and  Goods  and  Merchandises  whatsoever, 
shall  be  arrived  at 

upon  the  said  Ship,  &c.,  until  she  hath  moored  at  Anchor 
Twenty-four  Hours  in  good  Safety,  and  upon  the  Goods 
and  Merchandises  until  the  same  be  there  discharged  and 
safely  landed  ;  and  it  shall  be  lawful  for  the  said  Ship,  &c., 
in  this  Voyage  to  proceed  and  sail  to  and  touch  and  stay 
at  any  Ports  or  Places  whatsoever 

without  Prejudice  to  this  Insurance.  The  said  Ship,  &c., 
Goods  and  Merchandises,  &c.,  for  so  much  as  concerns  the 
Assured  by  Agreement  between  the  Assured  and  Assurers 
in  this  Policy,  are  and  shall  be  valued  at 

'2rouc|)in9;  the  Adventures  and  Perils  which  we  the  Assurers  are  contented 
to  bear  and  do  take  upon  us  in  this  Voyage,  they  are,  of  the  Seas,  Men-of- 
VVar,  Fire,  Enemies,  Pirates,  Rovers,  Thieves,  Jettisons,  Letters  of  Mart  and 
Countermart,  Surprisals,  Takings  at  Sea,  Arrests,  Restraints  and  Detain- 
ments of  all  Kings,  Princes,  and  People,  of  what  Nation,  Condition,  or 
Quality  soever.  Barratry  of  the  Master  and  Mariners,  and  of  all  other  Perils, 
Losses,  and  Misfortunes,  that  have  or  shall  come  to  the  Hurt,  Detriment,  or 
Damage  of  the  said  Goods  and  Merchandises  and  Ship,  &c.,  or  any  Part 
thereof;  and  in  case  of  any  Loss  or  Misfortune,  it  shall  be  lawful  to  the 
Assured,  their  Factors,  Servants,  and  Assigns,  to  sue,  labour,  and  travel  for, 
in  and  about  the  Defence,  Safeguard  and  Recovery  of  the  said  Goods  and 
Merchandises  and  Ship,  &c.,  or  any  Part  thereof,  without  Prejudice  to  this 
Insurance  ;  to  the  Charges  whereof  we,  the  Assurers,  will  contribute,  each 
one  according  to  the  Rate  and  Quantity  of  his  Sum  herein  assured.  And  it 
is  especially  declared  and  agreed  that  no  acts  of  the  Insurer  or  Insured  in 
recovering,  saving,  or  preserving  the  property  insured,  shall  be  considered 
as  a  waiver  or  acceptance  of  abandonment.  And  it  is  agreed  by  us,  the 
Insurers,  that  this  writing  or  Policy  of  Assurance  shall  be  of  as  much  Force 


LLOYD'S   POLICY  157 

and  Eflfect  as  the  surest  Writing  or  Policy  of  Assurance  heretofore  made  in 
Lombard  Street,  or  in  the  Royal  Exchange,  or  elsewhere  in  London.  And 
so  we  the  Assurers  are  contented,  and  do  hereby  promise  and  bind  ourselves, 
each  one  for  his  own  Part,  our  Heirs,  Executors,  and  Goods,  to  the  Assured, 
their  Executors,  Administrators,  and  Assigns,  for  the  true  Performance  of 
the  Premises,  confessing  ourselves  paid  the  Consideration  due  unto  us  for 
this  Assurance  by  the  Assured 

at  and  after  the  Rate  of 

IN  WITNESS  whereof,  we  the  Assurers  have  subscribed  our  Names  and  Sums 
assured  in 

N.B. — Corn,  Fish,  Salt,  Fruit,  Flour,  and  Seed  are  warranted  free  from  Average, 
unless  general,  or  the  Ship  be  stranded ;  Sugar,  Tobacco,  Hemp,  Flax,  Hides,  and 
Skins  are  warranted  free  from  Average  under  Five  Pounds  per  Cent.  ;  and  all  other 
Goods,  also  the  Ship  and  Freight,  are  warranted  free  from  Average  under  Three 
Pounds  per  Cent.,  unless  general,  or  the  Ship  be  stranded. 

At  the  head  of  the  policy  will  be  noticed  the  letters  "  S.G." 
Nobody  knows  of  a  certainty  what  these  cabalistic  letters  mean, 
but  this,  in  the  case  of  such  a  document,  would  obviously  be  no 
reason  for  their  omission.  They  may  mean  "  Ship  and  Goods  ", 
they  may  mean  "  Salutis  Gratia",  they  may  mean — and  practically 
do  mean — nothing.  They  may  be  surplusage :  but  when  the 
policy  goes  on  to  leave  a  blank  for  the  name  of  the  master — 
a  blank,  by  the  way,  which  no  one  ever  thinks  of  filling  in — who 
is  "  master  under  God  for  this  present  voyage  or  whosoever  else 
shall  go  for  master  in  the  said  ship  ",  it  is  evident  that  mere  sur- 
plusage is  no  objection  to  the  policy.  The  fact  that  the  insurance 
is  described  to  be  "  upon  any  kind  of  goods  and  merchandises, 
and  also  upon  the  body,  tackle,  apparel,  ordnance,  munition, 
artillery,  boat  and  other  furniture  of  and  in  the  good  ship"  indi- 
cates both  that  ship  and  cargo  belonged  in  early  days  to  one  and 
the  same  person,  and  that  if  a  boat  was  carried  at  all,  one  was  its 
number.  The  insurance  on  the  goods  and  merchandises  was  to 
continue  and  endure  until  these  were  safely  landed  at  their 
destination,  and  "  on  the  said  ship  until  she  hath  moored  at  anchor 
twenty-four  hours  in  good  safety."  What,  in  a  particular  case, 
should  or  should  not  be  deemed  "  good  safety  "  has  been  a  fertile 
source  of  legal  exercise.  Then  come  the  adventures  and  perils 
which  the  assurers  were  contented  to  bear  and  did  take  upon  them- 
selves :  and  a  quaint  enough  list  they  make,  and  probably  not  one 


i5«  LLOYDS    POLICY 

of  them  hut  has  proved  a  fortune  to  the  lawyers.  And  will  do  so 
yet  more  ;  for  the  developments  which  are  continually  taking 
place,  and  the  new  C(jnditions  which  are  continually  arisin^^  bring 
in  their  train  new  kinds  and  causes  of  loss  and  damage  with 
fruitful  ground  for  argument.  The  provisions  against  capture 
and  hostilities  are  extraordinarily  complete:  "men  of  war,... 
enemies,  pirates,  rovers... letters  of  mart  (sometimes  written 
*  marque ')  and  countermart,  surprisals,  takings  at  .sea,  arrests, 
restraints  and  detainments  of  all  kings,  princes,  and  people,  of 
what  nation,  condition,  or  quality  soever."  Then  follows  "barratry 
of  the  master  and  mariners ",  barratry  being  any  dishonest  or 
malevolent  act  of  the  master  or  crew  in  breach  of  their  duty  to 
the  owners.  We  need  not  follow  the  wording  to  the  end,  as  this 
is  not  a  treatise  on  marine  insurance.  VVe  shall  see  elsewhere 
(p.  197)  how  the  inclusion  of  what  are  known  as  the  "capture  risks" 
is  commonly  nullified  by  the  "  F.C.  and  S.  "  ("  free  of  capture  and 
seizure  ")  clause,  by  which  the  underwriters  explicitl)'  over-ride 
the  risks  which  they  have  just  before  explicitly  declared  them- 
selves contented  to  bear  and  take  upon  themselves.  If  such 
a  contract  were  to  be  drawn  up  for  the  first  time  to-day  it  would 
be  put  down  as  the  work  of  a  lunatic  endowed  with  a  private 
sense  of  humour.  As  it  is,  we  were,  like  our  grandfathers  and 
theirs,  born  and  brought  up  to  it,  and  we  regard  it  quite  seriously. 
And,  as  a  matter  of  fact,  it  answers  in  practice  remarkably  well. 

As  regards  the  "  N.B.",  known  as  the  "  Memorandum  ",  at  the 
end,  it  is  a  later  addition,  having  been  added  about  the  year  1749. 
The  point  of  it  is  this :  underwriters  had  come  to  the  conclusion  that 
some  goods  are  of  such  a  nature  that  it  was  tempting  Providence 
to  insure  them  against  sea-water  damage,  which  would  quickly 
spoil  them  all :  corn,  fish,  salt,  fruit,  flour,  seed.  Others  were  bad, 
but  not  so  bad :  sugar,  tobacco,  hemp,  flax,  hides  and  skins. 
These  latter  were  almost  bound  to  sustain  a  certain  amount  of 
damage  or  "  particular  average  ",  but  the  underwriters  declined 
to  be  liable  for  petty  damages.  If  the  damages  or  "average" 
amounted  to  5  per  cent,  the  underwriters  would  pay  the  whole ; 
if  they  did  not  amount  to  5  per  cent,  then  they  would  not  pay 
any  of  it.  As  regards  "all  other  goods,  the  ship  and  freight,"  the 
underwriters  drew  the  line  at  3  per  cent. — "  unless  general  or  the 


THE  PAYMENT  OF  LOSSES  AND  AVERAGES     159 

ship  be  stranded."  General  average  they  would  pay,  however 
small  in  amount.  It  is  not  a  little  curious,  however,  that  the  policy 
contains  no  mention  at  all  of  general  average  except  in  this 
indirect  reference.  But  that  it  was  always  paid  under  the  policy 
cannot  be  doubted.  Perhaps  the  intention  of  the  policy  in  this 
sense  was  from  the  first  so  well  understood,  that  general  average 
(contribution)  was  deemed  to  be  one  of  the  "  all  other  perils  " 
mentioned.  "  Jettison  "  is  of  course  a  general  average  sacrifice, 
but  we  are  referring  to  the  contributions.  But  now  the  proviso 
"  unless  general  or  the  ship  be  stranded " :  this  last,  a  most 
important  qualification,  is  rich  with  the  elements  of  pitch-and- 
toss.  Say,  a  cargo  of  corn,  fish,  salt,  fruit,  flour  or  seed.  The 
ship  leaks  like  a  sieve,  and  damages  the  cargo  99*9  per  cent. 
No  claim  :  the  insurance  is  free  from  average  (meaning  particular 
average)  unless....  But  in  entering  dock  the  ship  sticks  for 
a  brief  space — three  minutes  would  certainly  be  sufficient,  perhaps 
one  minute  might  be  so — on  the  dock  sill.  She  is  technically 
"  stranded  ",  and  the  underwriters  pay  without  question  all  the 
damage,  though  the  stranding  admittedly  had  nothing  to  do 
with  it.  And,  similarly,  if  the  vessel  shall  have  got  aground, 
either  with  or  without  damage,  at  any  time  during  the  voyage. 
That  is  the  bargain,  and  bargains  must  be  kept. 

The  Payment  of  Losses  and  Averages 

Every  marine  insurance  company  has  its  Claims  Department, 
with  its  "  Adjuster  of  Averages  "  at  its  head.  As  a  matter  of  fact, 
however,  his  title  has  become  a  misnomer,  since  claims  are  now 
generally  adjusted  by  a  firm  engaged  solely  in  this  business.  The 
company's  "  adjuster  ",  consequently,  is  rather  the  critic  of  other 
people's  work.  He  is,  in  fact,  now  more  generally  known  as  the 
"  Examiner  of  Claims."  Whenever  a  loss  or  claim  occurs  in  which 
complications  or  technicalities  arise,  in  its  relation  to  the  policy 
or  policies,  the  policy  and  all  the  various  documentary  proofs  are 
handed  over  to  a  professional  adjuster,  who  "adjusts"  the  claim 
and  adds  to  the  total  his  fee  for  the  adjustment.  This  will  be 
half-a-guinea  in  the  simplest  case,  but  if  a  general  average,  with 
its  truck-load  of  papers,  be  in  question,  it   may  run  into  two 


i6o     TIIK  PAYMENT  OF  LOSSES  AND  AVERAGES 

thousand  or  three  thousand  guineas.  "  Hull  averages,"  as  claims 
on  shi])  are  termed,  are  often  highly  technical,  especially  if 
daniaj;c  to  the  engines  be  involved.  The  company  Examiner 
of  Claims,  as  the  result  of  long  experience,  is  generally  able  to 
determine  as  to  the  substantial  accuracy  of  the  adjustment,  but 
in  case  of  need  or  doubt  he  hands  over  the  [papers  to  a  ship 
surveyor  or  engineer  who  can  advise  him  with  authority,  hut 
expert  surveyors,  like  other  experts,  do  not  necessarily  agree ; 
and  the  propriety  of  a  charge  or  item  included  in  the  adjust- 
ment may  become  the  subject  of  considerable  disagreement. 
And  when  damage  by  wear-and-tear  and  damage  by  some 
accident  overlap,  such  differences  are  intelligible  enough. 
Mostly,  perhaps,  they  end  in  compromise.  Goods  averages, 
although  they  may  be  lengthy,  are  ordinarily  matter  of  routine, 
and  the  experienced  company  adjuster  is  able  to  take  short  cuts 
in  verification  of  meticulous  calculations.  It  must,  of  course, 
be  here  remembered  (p.  131)  that  in  the  case  of  goods,  the  assured 
are  entitled  to  receive  not  the  actual  amount  of  their  loss,  but  so 
much  more  or,  possibly,  so  much  less  than  the  amount  of  the  loss, 
according  to  whether  the  agreed  value  in  the  policy  is  greater 
or  less — it  is  generally  greater — than  the  sound  market  value  of 
the  goods.  Now  and  again,  in  case  of  claim  for  loss  or  average, 
fraud  or  dishonesty  may  be  met  with;  but  this  is  very  exceptional. 
It  may  in  a  particular  case  be  possible  to  perpetrate  fraud  success- 
fully, but  long  familiarity  with  average  documents  has  given  the 
skilled  Examiner  of  Claims  such  an  insight — we  might  call  it 
instinct — that  he  is  not  easily  imposed  on.  He  is,  in  fact,  the 
company's  watch-dog,  and  the  certainty  that  any  claim  upon  the 
company  will  encounter  his  critical  examination  has  a  steadying 
effect  on  the  dishonestly  disposed — if  any  such  there  be. 

Every  underwriter  subdivides  his  business  according  to  the 
risk — as,  North  America  Out  and  North  America  Home:  Aus- 
tralasia Out  and  Australasia  Home,  by  Canal :  similar  voyages 
via  the  Cape ;  and  so  on  and  so  on.  The  premiums  are  posted 
up  under  the  headings  of  the  class  of  voyage  to  which  they 
relate,  and  the  claims,  as  they  arise,  are  posted  on  the  other 
side.  From  time  to  time  the  figures  are  added  up,  and  the 
underwriter  is  able  to  see,  on  an  average  of  years,  whether  on 


SHIP    INSURANCE  i6i 

a  particular  voyage  the  premiums  can  be  reduced  or  whether 
they  should  be  put  up.  The  accounts  of  individual  insurers  are 
also  kept  distinct,  so  that  in  like  manner  the  underwriters  can 
learn  whether  a  particular  account  is  to  be  encouraged  or  other- 
wise. With  all  or  most  underwriters  keeping  their  books  in  this 
manner,  rates  tend  to  become  uniform  or  stereotyped,  for  probably 
the  experience  of  one  underwriter  will  be  more  or  less  confirmed 
by  that  of  others. 

A  "  Name  "  at  Lloyd's  may  decide,  for  one  reason  or  another, 
to  give  up  underwriting,  but  underwriting  has,  as  it  is  said,  a  long 
tail.  It  is  also  said  that  it  is  "easier  to  get  into  than  to  get  out 
of."  General  averages  may  take  several  years  to  adjust,  cases 
may  be  contested  and  pass  from  Court  to  Court,  with  the  result 
sometimes,  in  the  case  of  foreign  litigation,  of  years  of  delay 
before  the  final  settlement.  Then,  hulls  are  mostly  "  written  "  for 
twelve  months,  so  that  risks  may  be  current  and  losses  possible 
for  a  year  or  more  after  the  writing  of  the  risk.  The  insurance 
companies  generally  allow  a  full  year  to  elapse,  after  the  termina- 
tion of  an  underwriting  year,  before  closing  it,  in  order  to  include 
the  "  second  year's  settlements."  At  the  end  of  this  second  year 
the  claims  known  to  be  outstanding  are  estimated,  an  addition  is 
made  for  unknown  contingencies,  and  the  total  is  provisionally 
charged  to  the  year  in  question  in  order  to  enable  the  year  to  be 
closed,  and  is  then  carried  to  a  suspense  account.  The  companies' 
Examiner  of  Claims  keeps  a  record  of  all  claims  and  salvages 
outstanding,  and  is  able  from  past  experience  to  make  the 
necessary  estimates  in  round  figures  with  tolerable  accuracy. 
But  to  be  on  the  safe  side  in  closing  a  particular  year  the 
contingencies  are  generally  over-estimated. 

Ship  Insurance 

Ship  insurance  or,  as  it  is  ordinarily  termed,  hull  insurance,  is 
a  highly  important  branch  of  marine  underwriting.  Some  com- 
panies and  underwriters  specially  lay  themselves  out  for  it, 
while  others,  as  the  result  either  of  unfortunate  experiences  or  of 
consciousness  of  inadequate  experience,  either  confine  their  hull 
business  to  the  liners  or  leave  it  severely  alone.     The  insurance 

O.  II 


i62  SHIP    INSURANCE 

of  liners,  indeccl,  and  tlic  insurance  of  tramps  generally — and 
70  per  cent,  of  our  tonnage  is  said  to  consist  of  tramps — are 
almost  distinct  classes  of  underwriting.  The  risks  to  be  covered 
in  either  case  are  manifold — total  loss,  averages  and  collision 
liabilities  ;  and  it  is  of  course  quite  po.ssible  for  a  ship  to  be  lost 
through  or  subsequent  to  a  collision  and  to  be  liable  in  addition 
to  £^  a  ton — or,  under  foreign  law,  up  to  her  full  value — for 
sinking  another  ship.  Life  liability,  as  we  have  .seen  (p.  106),  is 
not  a  risk  ordinarily  covered  under  a  policy  on  hull.  And  not 
merely  does  the  hull  policy  cover  averages  caused  by  perils  of 
the  seas,  but  it  is  extended  to  cover  injuries  to  machinery  arising 
out  of  accident  or  latent  defect ;  and  these  injuries  may  on 
occasion  give  rise  to  a  very  heavy  claim. 

In  the  old  days,  ships  were  small  and  of  comparatively  low 
value.  In  the  old  policy,  it  will  be  remembered  (p.  157  "  N.B."), 
the  ship  was  warranted  free  of  average  under  3  per  cent,  unless 
general  or  she  were  stranded.  So  that  if  a  ship  worth  iJ^io,ooo 
sustained  accidental  damage  it  would  not  give  rise  to  a  claim 
unless  it  amounted  to  ^^300.  If  it  reached  that  figure  the 
claim  would  be  paid  in  full.  But  to  say  that  a  ship  worth 
;^ioo,0(X)  would,  unless  stranded,  have  no  right  of  recovery  of  any 
amount  less  than  ^3000  would  be  to  place  too  heavy  a  burden 
on  the  owners.  Mitigating  conditions  had  con.sequently  to  be 
introduced — as,  for  example,  "warranted  free  from  average" — 
meaning,  of  course,  particular  average — "under  ;^iooo",  or  what- 
ever the  figure  might  be.  But  it  is  now  the  almost  universal 
practice  to  subdivide  the  risk,  though,  in  the  case  of  very  valuable 
ves.sels,  still  perhaps  with  a  minimum  limit  of  ;^500  or  ;{^iooo  or 
other  sum.  The  subdivision  will  depend  on  the  nature  and  value 
of  the  ship,  but  the  following  will  ser\^e  as  an  illustration  : 


Hull  and  Materials  valued  at    £ 

Cabin  Fittings  and  Passenger  Equipment 
Boilers  and  everj^-thing  connected  therewith    ... 
Machinery  and     „  „ 

Refrigerating  Machinery  and  Insulation 

Total  Valuation  £ 


SHIP    INSURANCE  163 

with  the  clause  "  average  payable  on  each  valuation  separately, 
or  on  the  whole  " ;  the  meaning  of  the  last  four  words  being 
that  if  the  average  comes  to  3  per  cent,  on  the  total  valuation,  all 
of  it  shall  be  recoverable,  even  though  in  the  case  of  one  of  the 
separate  interests  it  may  not  amount  to  3  per  cent.  A  further 
extension  is  now  general,  namely,  that  any  damage  actually 
caused  by  grounding  or  collision  shall  be  paid,  however  small  in 
amount,  and  notwithstanding  a  ;i^500  or  £\ooo  minimum  limita- 
tion. It  may  here  be  noted  that  a  stranding  and  a  grounding 
are  not  necessarily  the  same  thing,  every  grounding  not  being 
a  stranding.  A  grounding  may  be  a  more  or  less  ordinary 
incident  of  the  voyage  or  trade.  A  stranding  must  be  an 
unforeseen  and  accidental  occurrence. 

As  the  old  form  of  policy  is  ordinarily  used  indiscriminately 
for  ship  and  merchandise  (though  a  special  hull  form,  omitting 
the  references  purely  to  the  latter,  is  in  occasional  use),  it  is 
obvious  that  there  can  be  no  room  to  write  in  it  the  compendious 
wording  required  in  the  case  of  a  hull  insurance.  Consequently, 
as  already  stated,  this  wording  is  printed  separately  on  a  sheet 
gummed  at  the  margin,  and  this  sheet  or  "  batch  of  clauses  "  is 
affixed  to  the  policy.  First  of  these  clauses  is  the  "  R.D.C.  "  or 
running-down  clause,  to  which  reference  has  already  been  made 
(p.  106).  It  is  a  voluminous  clause  and  it  is  needless  for  present 
purposes  to  set  it  out  at  length.  Then  comes  permissive  wording, 
under  which,  practically,  the  ship  can  go  anywhere  or  do  anything, 
subject  to  the  general  purpose  of  the  insurance.  Notably  she 
may  "  tow  and  assist " — that  is,  she  is  free  to  earn  salvage 
money  for  herself — at  the  risk  of  the  underwriters.  Then  a  clause 
that  if  she  breaks  any  of  the  warranties  as  to  cargo,  trade,  locality 
or  date  of  sailing,  she  shall  be  held  covered  on  payment  of  any 
additional  premium  required — subject  to  immediate  notice  to 
the  underwriters.  Next,  a  provision  in  view  of  a  possible  transfer 
of  ownership,  to  which  the  underwriters  may  assent  or  not,  in 
their  discretion  ;  in  the  latter  event,  the  policy  to  be  cancelled 
and  premium  refunded  from  date  of  cancellation.  The  next 
clause  is  one  of  great  importance  ;  it  is  known  as  the  Inchmaree, 
or  the  "  Latent  Defect  "  clause.  The  clause  was  granted  in  order 
to   over-ride  a  judgment,  favourable  to  the  underwriters,  in   a 


i64  SHIP    INSURANCE 

machinery  chiiin  in  the  case  of  the  steamer  Inchmaree.  The 
effect  is  to  make  underwriters  liable  for  damages  caused  by  latent 
defect  or  by  negligence  of  the  engineers,  always  provided  that  the 
latent  defect  was  not  due  to  negligence  on  the  part  of  the  owners. 
Then  follow  several  clauses  which  here  call  for  no  special  com- 
ment. Grounding  in  the  Suez  Canal  (and  certain  other  named 
waters)  is  not  to  be  deemed  a  stranding,  in  its  technical  sen.se  and 
consequences,  but  damage  caused  by  such  a  grounding,  as  well  as  by 
fire  or  collision,  is  to  be  paid  irrespective  of  minimum  percentage. 
A  long  clause  follows,  defining  a  "  voyage."  Damages  occurring 
at  different  times  on  one  and  the  same  voyage  can  be  added 
together  so  as  to  bring  the  total  up  to  the  stipulated  minimum  ; 
but  with  ships  going  from  pillar  to  post  under  charter  or  seeking 
charter,  it  is  a  very  difficult  thing  to  say  where  one  "  voyage  " 
begins  or  another  ends.  Then  two  important  clauses  of  a  highly 
technical  nature,  and  the  "Notice  to  Underwriters"  clause  :  under- 
writers or  their  agents  to  be  given  the  opportunity  to  survey 
damages  before  their  repair,  and  to  be  consulted  as  to  the  ob- 
taining of  tenders.  Then  the  all-important  free-of-capture — 
"F.C.  and  S." — clause  discussed  below  (p.  197).  Finally,  provision 
for  return  of  premium  for  cancelment  of  the  policy  or  for  time 
spent  in  dock  instead  of  under  voyage.  And  of  course  special 
clauses  may  be  added  to  meet  special  circumstances. 

In  that  truly  wonderful  production,  the  "Shipping  Number" 
issued  by  the  Times  on  13  December,  191 2,  occurs  under  the 
head  of  "  Marine  Insurance"  the  following  passage: 

"  There  is  no  need  to  insist  on  the  misfortunes  of  the  past 
1 2  months,  but  it  is  sufficient  to  say  that  underwriters,  even  those 
representing  the  giant  companies,  are  not  now  writing  the  same 
large  lines  as  they  accepted  a  year  ago.  They  had  had  no  experi- 
ence of  boats  of  over  40,000  tons,  and  they  had  assumed  that  it  was 
practically  impossible  for  such  a  vessel  in  time  of  peace  to  sink. 
Their  opinions  perforce  have  now  been  revised,  and  a  few  days 
ago  the  fleet  of  one  of  the  greatest  of  all  the  British  companies 
was  insured  on  terms  representing  a  substantial  advance  on  the 
rates  previously  quoted.  As  vessels  are  built  larger  and  larger 
there  may  be  a  real  difficulty  in  insuring  them,  even  though  the 
resources  of  every  insurance  market  of  the  world  be  called  into 


SHIP   INSURANCE  165 

requisition.  Underwriting  would  resolve  itself  into  a  mere  form 
of  gambling  were  the  companies  or  the  individual  underwriters 
at  Lloyd's  to  write  larger  amounts  on  any  one  risk  than  they 
could  afford  to  lose. 

"In  the  future,  when  there  are  many  vessels  of  over  50,000 
tons,  it  will  be  reasonable  for  underwriters,  relying  on  the  law  of 
average  and  possessed  of  sufficient  capital,  to  retain  very  large 
sums  on  each  boat ;  during  the  next  few  years  the  number  of 
such  vessels  will  be  so  small  that  the  loss  of  one  must  have 
serious  consequences  for  the  market.  That  was  the  secret  of  the 
disturbance  caused  by  the  loss  of  the  Titanic.  Closely  connected 
with  this  question  of  increased  values,  due  to  greater  size,  is  the 
question  of  higher  values  now  being  generally  placed  on  shipping 
tonnage  in  consequence  of  the  great  demand  for  ships  of  all 
descriptions  " — to  which  might  have  been  added  "  together  with 
the  high  cost  of  materials  largely  due  to  this  demand  and  to  the 
great  advance  in  the  wages  of  the  workmen,  skilled  and  unskilled, 
employed," 

The  reference  to  great  values  was  not  only  shrewd  and  correct 
but  has  proved  prophetic.  Think  what  it  must  needs  mean  to 
"  place "  the  insurance  of  a  50,000-ton  fast  passenger  boat. 
(Naval  officers,  no  doubt  rightly,  object  to  such  a  misdescription 
of  an  ocean  vessel,  but  in  commercial  circles  a  liner  is  commonly 
a  "  boat.")  What  her  actual  cost  would  be  is  conjectural,  but  it 
is  not  likely  to  be  much  under  i^35  a  ton  and  might  well  be  more. 
Taking  it  at  i^35,  we  get  at  once  a  value  of  ;^  1,750,000.  Or  call 
it  even  ;^  1,500,000 — and  indeed,  this  is  supposed,  correctly  or 
not,  to  have  been  the  cost  of  the  Iniperator.  The  owners 
simply  cannot  find  a  market  for  such  an  insurance  ;  and  to  get 
even  the  greater  part  of  it  placed  at  rates  which  can  be  borne, 
they  must  themselves,  in  one  form  or  another,  come  in  as  under- 
writers. Some  of  the  great  Atlantic  companies,  face  to  face  with 
the  difficulties  which  the  loss  of  the  Tita?iic  had  brought  to  a 
head,  have  recently  decided  on  a  scheme  of  mutual  insurance,  at 
any  rate  of  their  biggest  vessels.  At  a  meeting  of  the  Cunard 
Company's  shareholders  called  together  to  approve  and  give 
effect  to  this  scheme,  the  chairman  said  : 

From  the  time  when  the  Lusitania  and  the  Mauretania  first  came  into 


i66  SHIP    INSURANCE 

commission  \vc  have  had  great  difficulty  in  securing  adequate  insurance, 
owing  to  the  very  high  values  involved.  As  a  matter  of  fact,  it  appears  that 
the  largest  amount  of  insurance  which  can  be  placed  upon  one  vessel  under 
normal  conditions  does  not  exceed  about  800,000/.  By  paying  high  rates, 
underwriters  may  be  tempted  a  good  deal  against  the  grain  to  increase  their 
lines  above  their  ordinary  limits,  but  even  with  the  underwriting  capacity  of 
the  whole  marine  insurance  world  stretched  to  its  utmost  we  have  still  been 
left  from  the  first  with  very  large  amounts-  entirely  uncovered  amounts — quite 
disproportionately  large  when  compared  with  our  uninsured  risks  on  any 
other  vessels. 

So  long  as  we  were  the  only  company  owning  steamers  of  such  high 
values,  there  was  no  remedy  for  this  state  of  affairs.  But  other  companies 
are  now  experiencing  the  same  difificulties,  and  it  has  very  naturally  occurred 
to  us  when  talking  these  matters  over  that  while  we  could  not  diminish  the 
total  amount  of  uninsured  risk,  we  might,  at  any  rate,  by  a  mutual  arrange- 
ment, spread  it  over  a  larger  number  of  bottoms.  The  formation  of  a  mutual 
association  designed  to  achieve  these  objects  has  been  under  discussion  for 
some  time  past  between  ourselves,  the  White  Star  Line,  and  the  Hamburg- 
American  Line,  and  we  have  already  reached  the  point  where  details  have  to 
be  settled. 

We  have  not  the  slightest  intention  of  doing  without  the  service  of  our 
marine  insurance  friends,  who  have  helped  us  in  so  many  ways  in  the  past. 
We  simply  want  to  be  saved  from  the  necessity  of  urging  them  to  write 
larger  lines  than  they  really  care  to  take,  and,  as  I  have  already  said,  to 
spread  our  uninsured  risks  over  a  larger  number  of  ships  of  the  very  highest 
class. 

I  might  enlarge  on  the  significance  of  this  co-operation  of  British  and 
foreign  companies  for  the  protection  of  their  common  interests,  which  is 
surely  of  the  happiest  augury  for  the  continuance  of  that  good  feeling  to 
which  I  attach  so  much  importance — a  good  feeling  which  may  perhaps  have 
an  international  value  extending  beyond  the  boundaries  of  our  own  com- 
mercial interests.... 

The  great  steamship  companies  will  presumabl}'  all  have  to 
obtain  additions  to  the  powers  conferred  b}-  their  articles  of 
as.sociation,  and  no  doubt  these  additions  will  be  so  framed  as 
to  enable  the  companies,  if  they  please,  at  any  future  time  to 
engage  in  underwriting;  and  from  insuring  their  own  and  allied 
companies'  steamers  to  insuring  (which  can  be  done  by  a  special 
bill  of  lading)  the  goods  on  board  .such  steamers  is  not  a  long 
step.  But  for  some  time,  at  any  rate,  their  own  liabilities  will  be 
quite  heavy  encjugh  without  adding  cargo  to  them,  while  the 
insurance  market  at  large  would  resent  a  step  which,  if  widely 


SHIP    INSURANCE  167 

followed,  might  seriously  prejudice  the  interests  of  the  under- 
writers. And  at  the  present  juncture  at  all  events  the  great 
companies  have  much  to  gain  by  maintaining  the  most  cordial 
relations  with  the  insurance  market.  Meantime  we  have  this 
remarkable  conjunction :  great  British  and  foreign  steamship 
companies  arranging  to  insure  one  anothers'  vessels,  and  their 
Governments  simultaneously  arming  these  vessels  in  order  that 
they  may  protect  themselves  from  attack  by  one  another.  Each 
measure  is  perfectly  logical  in  itself,  but  what  are  we  to  make  of 
them  conjointly  ?  So  far,  it  has  not  been  discussed  whether  the 
mutual  insurance  shall  include  the  risks  of  hostilities,  but  this 
seems  impossible  ;  and  indeed  by  British  law  it  would  be  im- 
possible, in  the  sense  that  such  contracts  could  not,  in  the  event 
of  hostilities,  be  sued  upon  (p.  195).  They  would  be,  in  effect, 
"honour  policies "  (p.  168):  they  could  not  be  sued  upon,  but 
underwriters  would  none  the  less  be  at  liberty  to  settle  upon 
them  in  the  ordinary  course,  and  would  doubtless  do  so.  Of 
course,  if  one  of  the  contracting  parties  were  at  peace  and  the 
other  at  war,  the  former  might  guarantee  the  latter  ;  but  this 
would  amount  to  comparatively  little. 

The  fire  on  board  the  mammoth  Imperator  in  August  191 3 
called  forth  the  following  statement  in  the  Times: — "The 
Imperator  is  believed  to  have  cost  iJ^i,500,0CX)  to  build,  and 
her  insured  value  is  put  at  iJ^  1,100,000.  A  sum  of  ;^350,ooo  was 
insured  in  Hamburg  and  London  with  a  provision  that  under- 
writers should  be  free  from  claims  of  under  i  per  cent. ;  a  sum 
of  ;^  1 00,000  was  covered  against  the  risks  of  total  loss  and 
general  average ;  and  ^^400,000  was  insured  in  the  Pool  in  which 
the  Cunard  and  White  Star  participate.  A  total  amount  of  only 
^^850,000  thus  appears  to  have  been  covered.  The  insurances 
for  the  i^3 50,000  were  accepted  at  4  per  cent.  ;  and  the  proposal 
lately  under  consideration  was  that  the  insurances  should  be 
renewed  as  from  next  summer  at  £T).  los.  per  cent.  In  fact,  a 
certain  amount  had  been  accepted  at  that  rate." 

The  German  shipping  companies  are,  as  regards  insurance, 
in  a  much  worse  position  than  their  British  competitors  or 
colleagues,  because  while  the  British  companies  have  to  go 
abroad  for  a  comparatively  small  share  of  their  cover,  Lloyd's 


i68  SHIP    INSURANCE 

and  the  British  companies  are  a  highly  important  market  for  the 
foreif^n  owners.  Rut  while  the  market  for  steamers  trading  to 
New  York  is  one  of  the  most  open,  for  steamers  on  the  Canadian 
route,  with  its  greater  risks,  the  facihties  are  by  no  means  so 
considerable  ;  and  steamers  on  this  route  are  yearly  growing 
larger.  It  seems,  therefore,  that  the  example  set  by  the  owners 
of  the  New  York  mammoths  has  plenty  of  room  for  wider 
adoption. 

"P.P.I."    InSUKANCKS:     HONOUR    POLICIES 

Against  gambling  and  wager  contracts  the  law  sternly  sets 
its  face.  They  are  not  illegal  in  the  sense  that  they  are  punish- 
able, but  the  law  declares  them  null  and  void  :  legal  process 
cannot  be  used  for  their  enforcement.  And  it  makes  no  difference 
whether  a  mere  gambling  bet  be  in  question  or  a  purely  speculative 
insurance,  though  regularised,  in  form,  by  a  marine  insurance 
policy.  Any  marine  insurance  must  have  a  genuine  "  interest " 
as  its  foundation,  and  in  the  event  of  loss  this  interest  must  be 
capable  of  proof  and  must  if  required  be  proved.  But  there  are 
many  quite  legitimate  risks  which,  in  the  technical  legal  sense, 
are  incapable  of  proof  For  example,  if  a  ship  and  cargo  arrive, 
some  individual  knows  from  past  experience,  or  honestly  believes, 
that  he  will  be  able  to  earn  certain  commissions  or  obtain  certain 
profits.  He  insures  these,  then,  as  being  contingent  on  the  safe 
arrival  of  the  ship.  But  as  he  will  be  unable  to  prove  them  in 
the  event  of  loss,  he  agrees  with  his  underwriters — who,  for  their 
part,  fully  appreciate  the  circumstances — that  the  following  or 
similar  clause  shall  be  inserted  in  the  policy,  both  parties  well 
knowing  that  its  presence  will  make  the  policy  illegal,  that  is, 
incapable  of  legal  enforcement : 

"  It  is  declared  and  agreed  that  in  the  event  of  loss  this  policy  shall  be 
deemed  sufficient  proof  of  interest.  Without  benefit  of  salvage  "—/.^.  to  the 
underwriters. 

That  is,  production  of  the  policy  shall  dispense  with  the  legal 
necessity  to  prove  the  existence  of  the  interest  insured  under  it. 
These  "policy  proof  of  interest"  or  "P.P.I."  insurances  are 
very  common,  and  are  used  for  a  variety  of  morally  legiti<nate 


"P.P.I."   INSURANCES:    HONOUR   POLICIES    169 

purposes.  But  as  they  cannot  be  enforced,  but  depend  solely  on 
the  honourable  contract  of  the  underwriters,  they  are  known  as 
"  Honour  Policies  ",  and  no  surer  policy  can  be  had.  But  while 
in  the  vast  majority  of  cases  their  use  is  perfectly  honourable 
and  defensible,  they  can  be  turned  into  a  most  dangerous  form 
of  gambling.  Thus,  a  person,  having  private  reasons  for  believing, 
or  calculating  on  the  probability,  that  a  certain  vessel  will,  either 
this  voyage  or  the  next  or  following,  encounter  loss,  might 
systematically  or  specially  take  out  a  policy  on  so-called  "  Dis- 
bursements " — which  may  mean  anything  or  nothing — "  P.P.I." 
In  fact,  such  a  practice  did  actually  grow  into  a  regular  system 
of  "  spotting  the  loser  ",  and  time  after  time  it  came  out,  in  Board 
of  Trade  enquiries  into  ship-losses — unaccountable  or  otherwise — 
that  policies  up  and  down  the  kingdom  had  been  effected  on  her, 
"  P.P.I."  If  memory  may  be  trusted,  even  a  chemist  at  a  remote 
Irish  townlet  proved  to  have  gambled  freely  in  such  insurances. 
The  fact  that  in  certain  cases  such  insurances  went  hand  in  hand 
with  losses  which  could  not  be  satisfactorily  explained  and  bore 
a  highly  suspicious  appearance  became,  indeed,  a  public  scandal, 
and  one  obviously  fraught  with  danger  to  our  shipping  and  all 
concerned  in  it.  The  policies  being  "  Honour  Policies  "  and,  with 
the  ship  at  the  bottom  of  the  sea  or  broken  to  pieces  on  a  sand 
bank,  no  actual  proofs  of  dishonesty  being  possible,  the  under- 
writers had  to  pay :  the  credit  or  honour  of  their  signature 
demanded  it. 

Eventually,  namely  in  1909,  a  special  Act  was  placed  on  the 
statutes — the  Marine  Insurance  (Gambling  Policies)  Act,  as 
a  pendant  to  the  Marine  Insurance  Act  of  1906'.  This  1909 
enactment  makes  it  an  offence  punishable  by  fine  or  imprisonment 
for  any  person  to  effect  a  contract  of  marine  insurance  without 
having  a  bond  fide  interest,  direct  or  indirect,  either  in  the  safe 
arrival  of  the  ship  or  in  the  subject  matter  insured,  or  a  bond  fide 
expectation    of  acquiring   such    an    interest.     The    Act    is    not 

•  Until  the  1906  Act  was  passed,  the  British  marine  insurance  law  may  be  said  to 
have  depended  entirely  on  the  recorded  legal  judgments.  The  Act  codified  the  law. 
See  The  Alarine  /)is7trance  A c(,  by  Sir  Mackenzie  Chalmers,  K.C.B.,  draughtsman 
of  the  Bill,  and  the  writer  jointly.  For  an  excellent  little  handbook  on  marine 
insurance  see  also  Templeman's  Maniie  Insurance ;   its  Principles  and  Practice. 


I70     "P.P.I."   INSURANCES.     OVER-INSURANCE 

intended  to  prevent  and  is  not  jircventing  P.P.I,  in-surances 
founded  on  legitimate  but  not  conveniently  provable  interests, 
but  is  designed  to  stop,  once  for  all — and  it  apparently  has 
.stopped — the  class  of  highly  objectionable  speculation  which  it 
was  expressly  framed  to  prevent. 


Over-Insuk.\n'Ct: 

In  the  ab.sence  of  fraud,  concealment,  misrepre.sentation  or 
mistake,  the  valuation  declared  in  any  marine  insurance  policy 
holds  good  in  the  event  of  loss.  Merchants  mostly  over-insure 
their  goods,  to  cover  increased  value  at  destination.  Sometimes 
this  increase  proves  to  have  been  greatly  over-estimated.  And 
similarly  shipowners,  who  might  suffer  more  or  less  directly  by 
being  deprived  of  their  ship  and  having  to  replace  her,  perhaps 
on  a  temporarily  costly  market,  ordinarily  cover  something 
beyond  her  market  value.  It  is,  however,  .sometimes  charged 
against  underwriters  that  they  themselves  insist  that  a  vessel  shall 
be  in.sured  beyond,  sometimes  very  much  beyond,  her  real  value  ; 
and  that  the  practice  is  not  in  the  interests  of  safe  navigation. 
The  allegation  and  the  conclusion  are  both  correct,  but  the  ex- 
planation is  eminently  logical.  Take  a  ca.se  where  a  ves.sel  worth 
onl)'  ;^20,000  is  insured  with  the  full  knowledge  of  the  under- 
writers— or,  indeed,  to  meet  their  requirements — for  ;^30,ooo. 
These  figures  may  be  extreme,  but  they  are  by  no  means 
impossible.  Why  does  the  underwriter  assent  to  or  require  this 
gross  over-insurance  ?  There  are  two  very  intelligible  reasons. 
Let  us  suppose  that  lo  sets  of  underwriters  each  insure  ;^20C)0 
on  a  vessel,  valued  at  ;^20,ooo,  and  that  she  sustains  ;^  10,000 
worth  of  damage.  This  will  be  a  50  per  cent,  claim  on  each 
underwriter.  But  if  the  same  ship  be  valued  at  ;^30,ooo  the 
same  amount  of  damage  will  give  rise  to  a  claim  of  only  33^  per 
cent.,  or  a  saving  of,  say,  17  per  cent.  The  owners  will  get  their 
i^io,ooo  all  the  same,  only  they  will  get  it  from  15  underwriters 
for  ;^2000  each  instead  of  from  10  of  ;^2000  each.  Of  course 
they  will  have  to  pay  more  premium  :  but  the}'  have  got  to 
insure  their  ship  on  the  best  terms  obtainable.  Then  there  is 
the  other  reason.      If  a  ship  goes  ashore  and  it  will  cost  as  much 


GOODS    INSURANCE  171 

to  get  her  off  and  repair  her  as  she  will  be  worth  when  repaired, 
she  is  said  to  be  a  "  C.T.L." — Constructive  Total  Loss.  The 
underwriters  pay  a  total  loss  and  sell  the  ship  as  she  lies.  But 
by  putting  a — say — ;^30,ooo  value  on  a  ;^20,ooo  ship  a7id  inserting 
the  following  clause  they  get  off,  if  the  ship  be  salved  and 
repaired  for  ;^20,ooo,  with  a  claim  for  only  66|  per  cent. : 

It  is  hereby  declared  and  agreed  that  the  insured  value  shall  be  taken  as 
the  repaired  value  in  ascertaining  whether  the  vessel  is  a  constructive  total 
loss. 

That  is  to  say,  if  the  vessel  can  be  got  off  and  repaired  for 
any  less  sum  than  her  insured  value,  she  shall  be  repaired,  though 
the  repairs  may  come  to  as  much  as  or  more  than  her  actual 
value  when  repaired.  Without  this  clause,  the  underwriters 
would  have  to  pay  the  full  insured  value  of  ;^30,ooo  if  the  salvage 
expenses  and  repairs  came  to  ;^20,ooo,  the  actual  value  of  the 
ship  when  repaired. 

Freight 

When  freight  is  payable  on  delivery  of  the  goods  it  is  said 
to  be  "shipowners'  freight",  and  the  owners  insure  it.  It  is  at 
their  risk.  If  the  .ship  should  be  lost,  of  course  the  freight  would 
be  lost.  And  if  general  average  be  incurred,  the  freight  at  risk 
will  have  to  contribute.  In  addition,  there  is  such  a  thing  as 
particular  average  on  freight,  as  on  other  interests.  In  the  case 
of  freight  on  salt  or  sugar,  for  instance,  if  the  ship  should  strand 
or  strain  and  leak  and  cause  the  goods  to  dissolve,  a  partial  loss 
or  particular  average  would  occur  upon  the  freight. 

When  freight  is  paid  on  shipment  of  the  goods  it  practically 
ceases  to  exist  as  freight :  it  becomes  part  of  the  value  of  the 
goods,  and  the  merchants'  insurance  on  the  goods  is  increased 
accordingly.     It  is  at  their  risk. 

Goods  Insurance 

It  may  be  well  to  understand  the  essential  distinction  between 
the  marine  insurance  and  the  fire  insurance  policy.  In  the 
marine  policy  the  value  of  the  property  insured,  the  "  interest " 


172  GOODS    INSURANCE 

as  it  is  termed,  is  agreed  or  admitted,  and  in  the  event  of  total 
loss  this  is  the  amount  to  be  paid.  In  the  fire  policy  this  is  not 
so — the  sum  insured  may  be,  say,  Xiooo,  but  in  the  event  of 
total  loss,  if  the  actual  amount  of  the  loss  be,  say,  ;^850,  only 
;^850  will  be  paid.  In  marine  insurance  the  value,  having  been 
admitted,  has  not  to  be  proved  ;  and,  generally,  in  the  case  of 
merchandise  there  is  more  or  less  over-insurance.  The  owners 
of  the  merchandise  hope  for  a  good  market  and  they  estimate, 
sometimes  greatly  over-estimate,  their  profit  in  advance,  and 
insure  accordingly.  The  practice  is  all  in  good  faith  and  is  well 
understood.  The  idea  is,  no  doubt,  or  was,  that  goods  on  board 
ship  are  beyond  the  shipper's  control  and  that  the  safety  of  the 
officers  and  crew  is  more  or  less  identified  with  that  of  the 
cargo.  The  owner  of  the  goods  is  therefore  allowed  to  place  his 
own  value  on  them,  for  marine  insurance.  With  goods  in  a 
warehouse,  house  or  store  which  is  the  property  of  the  insurer 
himself  the  position  is  very  different.  Therefore,  while  the 
owner  of  the  goods  on  land  may  insure  them  against  fire  at  his 
own  figure,  if  they  be  destroyed  he  will  have  to  prove  the  amount 
of  his  loss  and  will  be  paid  no  more  than  this. 

Where,  under  the  marine  policy,  the  loss  is  not  total  but 
partial — a  "particular  average" — then  the  indemnity  still  follows 
the  basis  of  the  value  insured  and  admitted.  Whether  under- 
insured  (which  is  exceptional)  or  over-insured  (which  is  general) 
the  compensation  is  based  on  the  insured  value.  This  has 
already  been  illustrated ^ 

The  insurance  of  merchandise  falls  under  one  or  other  of  two 
heads,  and  is  either  "F.P.A. "  or  "with  average,"  for  which 
latter  the  term  "  all  risks  "  is  often,  though  inaccurately,  used 
("all  risks"  as  distinguished  from  F.P.A.);  but  as  a  fact  there 
are  many  risks — risks  on  the  sea  as  distinguished  from  risks  of 
the  sea  (p.  82) — which  practically  are  never  covered  b\-  marine 
insurance. 

Particular  Average  is  primarily  .sea-water  damage.     "F.P.A." 

is  "  free  of  claim  for  particular  average."   This  absolute  condition 

is,  however,  qualified.     If  the  ship  be  stranded  or  on  fire,  or, 

very  commonly,  if  the  damage  be  caused  by  collision  or  by  forced 

^  Average  Adjusters,  p.   131. 


GOODS    INSURANCE  173 

discharge  at  a  port  of  distress,  then  the  underwriters  pay  for  the 
damage.  Some  goods — e.g.  salt,  seed  and  fruit  (p.  158) — are 
always  insured  F.P.A.  because  owing  to  their  susceptible  or 
perishable  nature  underwriters  will  not  cover  the  risk  of  average 
(meaning,  of  course,  particular  average:  general  average  is  always 
covered)  unless  at  prohibitive  rates.  On  the  other  hand,  some 
goods — e.g.  coal,  iron,  timber  and  tallow — are  always,  or  com- 
monly, similarly  insured  because  they  have  little  or  nothing  to  fear 
from  the  risk  of  contact  with  sea-water :  it  is  not  worth  while  to 
pay  a  higher  premium  to  cover  the  risk.  Putting  these  two  classes 
of  exception  aside,  the  rest  are  mostly  insured  with  average,  but 
shippers  can  make  their  own  choice — whether  to  insure  at  a  low 
rate  F.P.A.  and  run  their  own  risk  of  damage,  or  at  a  higher  rate 
with  right  to  recover  from  the  underwriters.  The  additional 
premium  to  cover  the  risk  of  average  varies  with  the  goods,  but 
in  these  days  of  steel-built  and  practically  water-tight  vessels  the 
risk  of  average  is  not  great,  and  the  addition  to  the  F.P.x'\.  rate, 
to  cover  the  risk  of  average,  is  in  most  cases  inconsiderable. 

The  terms  of  the  "Memorandum"  (p.  157  "  N.B.")  in  the 
ancient  marine  policy  are,  as  a  rule,  strictly  adhered  to  as  regards 
the  minimum  limit  recoverable,  this  being  5  per  cent,  in  the  case 
of  sugar,  tobacco,  hides,  etc.,  and  3  per  cent,  in  the  case  of  the 
other  goods.  But  as  with  the  ship,  so  with  the  cargo,  the  severity 
of  the  minimum  is  mitigated  by  subdivision.  In  the  case  of 
Manchester  goods,  carpets  and  so  forth,  however  many  packages 
there  may  be  in  the  shipment  insured,  each  bale  or  case  is 
"  deemed  a  separate  insurance."  Other  goods  are  apportionable 
into  series  of  every  5,  10  or  20  bags  or  packages.  The  original 
idea  was  probably  to  fix  a  series  which  would  amount  to  about 
;^icxD  in  value  ;  but  nowadays  all  goods  have  their  conventional 
series,  which  ordinarily  represent  a  considerably  lower  sum. 

Some  special  goods  are  always  insured  literally  against  "  all 
risks  " — "  all  risks  of  whatever  nature."  Bonds  or  securities  by 
registered  post ;  gold,  coined  or  in  bars ;  and  frozen  meat  are 
the  most  notable  instances.  The  chief  internal  risk  to  frozen 
meat  is  that  of  the  refrigerating  engines  breaking  down,  or  of 
the  temperature  not  being  kept  sufficiently  low. 

Originally,  the  risk  on  goods  began  with  "  the  loading  thereof 


174  GOODS    INSURANCE 

aboard  ",  continuing  and  enduring  "  until  the  same  be  discharged 
and  safely  landed  " — which  words  seem  to  contemplate  a  barge 
risk.  But  altered  conditions  have  caused  a  great  extension  of 
the  policy.  In  many  cases  the  goods  are  insured  from  warehouse 
to  warehouse,  the  underwriters  thus  taking  on  themselves  the 
risk  of  fire,  rain  and  railway  accident  between  warehouse  and 
ship,  and  between  ship  and  warehouse.  Wool  is  often  insured 
from  the  sheep's  back  ;  tobacco  from  the  drying-shed  ;  tea  from 
the  moment  of  picking ;  and  so  on.  So  far,  no  policy  has  been 
made  to  cover  the  wool  before  shearing,  but  the  growing  produce 
of  the  tea-plants  is  often  insured  against  hail.  In  fact,  the 
marine  insurance  policy  has  become  a  peg  on  which  to  hang  all 
kinds  of  insurances,  on  sea  and  land,  and  on  all  sorts  of  terms. 
An  endless  variety  of  clauses  has  been  invented^  to  cover  all  sorts 
of  interests  against  all  sorts  of  risks,  and  over  and  above  these 
special  clauses  are  general  clauses  relating  to  extra  charges, 
shore  risks,  grounding,  and  so  on,  which,  as  in  the  case  of  ship 
insurances,  are  affixed  to  the  policy — and  in  addition  others  are 
perhaps  written  in  or  stamped  upon  it.  The  policy  is  sometimes, 
in  fact,  a  sort  of  hoarding  for  the  display  of  contractual  notices, 
the  whole  being  absolutely  unintelligible  to  any  but  experts  and 
sometimes  with  room  for  differences  of  opinion  even  amongst 
them.  For  in  these  wonderful  days  new  risks,  new  liabilities, 
new  subjects  for  insurance  are  constantly  presenting  themselves, 
with  the  result  of  new  wine  in  old  bottles.  But  so  dear  to 
tradition  are  the  old  bottles,  that  in  preference  to  changing  them 
as  the  result  of  a  legal  judgment,  the  old  bottles  are  still  used, 
with  the  judgment  to  explain  them.  And  absurd  as  it  all  ma)- 
seem,  the  system  answers  in  practice  well  enough. 

^  See  Marine  Insurance  Notes  and  Clauses  by  the  writer. 


CHAPTER    IV 

The  Export  of  Merchandise 

At  every  important  trading  port  there  are  established 
merchants  who,  solely  or  in  conjunction  with  trading  of  their 
own,  carry  on  a  commission  business.  That  is,  they  act  as  buyers 
and  sellers  for  merchants  carrying  on  business  oversea,  charging 
a  commission  on  cost  or  on  sale  proceeds  as  their  remuneration. 
For  the  most  part  they  lay  themselves  out  to  obtain  clients 
especially  at  some  particular  oversea  centre,  and  in  this  they 
are  in  keen  competition  with  others  similarly  engaged.  Inter- 
competition,  therefore,  results  in  low  rates  of  commission.  Say, 
for  example,  that  Sabapathy  Chitty  or  Ramasawmy  Modelliar — 
these  names,  needless  to  say,  indicate  no  firm  known  to  the 
author  to  exist — is  a  merchant  in  Madras,  exporting  to  London 
skins,  hides,  indigo  or  turmeric,  for  his  own  account  or  for  local 
producers,  and  importing  from  England  ironware,  Manchester^ 
goods,  oilcloth  or  what  else :  the  London  merchant — let  us  call 
him  Brownson— receives  and  sells  for  Sabapathy  or  Modelliar 
the  local  produce  they  send  him,  while  any  British  or  Continental 
wares  they  may  require,  for  themselves  or  their  friends,  the}' 
will  order  through  him.  Let  us  leave,  for  the  moment,  Brown- 
son's  metier  of  importer  and  deal  with  him  solely  as  exporter. 
When  the  Indian  mail  comes  in  he  sorts  out  all  the  letters 
which  contain  orders,  or  "  indents  "  as  he  terms  them,  and  passes 
them  out  to  his  clerks,  who  dissect  them.  An  order  may  be 
simply  for  so  many  tons  of  bar  iron,  of  different  carefully  detailed 
measurements,  or  for  so  many  bales  of  Manchester  goods,  or  it 
may  be  for  a  whole  string  of  mixed  goods  :  soap,  watches,  razors, 
scarves,  revolvers — anything.  Brownson's  firm  has  its  regular 
list  of  "  suppliers."     To  each  of  these  will  be  sent  an  order  for 


176  THE   EXPORT   OF   MERCHANDISE 

the  particular  j^oods  which  they  manufacture  or  deal  in,  till 
all  the  mail's  indents  have  been  ^iven  out.  It  may  be  possible 
to  execute  the  order  immediateh',  or  it  may  require  days  or 
weeks.  Brownson's  shipping;  clerk  being  in  touch  with  all  the 
shipowners  in  the  habit  of  loading  on  the  berth  for  Madras,  or 
with  their  shipbrokers  or  representatives,  will  know  which  are 
the  steamers  loading  or  which  will  shortly  be  placed  upon  the 
berth,  and  what  their  dates  of  sailing.  On  the  one  hand  he  will 
arrange  for  such  space  as  he  may  require  in  one  or  other  of 
these  steamers,  and  on  the  other  he  will  cause  instructions  to  be 
sent  to  the  various  suppliers  accordingly.  If  for  example  the 
goods  to  be  exported  are  for  Sabapathy  Chitty,  Brownson  may 
direct  that  they  be  packed  in  cases,  tin-lined  or  otherwise  (for 
goods  in  tin-lined  cases  the  insurance  premium  "  with  average  " 

is  lower),  each  case  to  be  marked,  say,  <C/b^^'  ^^^  upper  letters 

M.\DR.\S 

being  the  initials  of  the  consignee,  the  lower  of  the  shipper,  with 
the  destination  underneath.  If  there  will  be  ten  cases  from 
a  particular  supplier,  Brownson  may  order  them  to  be  numbered 
I  to  lo,  or  25  to  34,  or  whatever  it  may  be ;  with  corresponding 
instructions  to  all  the  other  suppliers.  If  there  be  50  cases  in  all, 
they  will  all  bear  the  same  mark  and  be  numbered  consecutively 
I  to  50.  Let  us  assume  that  they  will  all  go  out  by  the  steamer 
Alpha.  The  suppliers  will  be  informed,  and  will  have  to  make 
such  arrangements  with  the  railway  or  other  carriers  as  will 
insure  delivery  at  the  docks  by  a  certain  date.  The  cases  may 
also  have  stencilled  on  them  the  name  of  the  steamer  for  which 
they  are  intended.  But  if  a  number  of  small  articles  be  ordered 
from  various  suppliers,  the  suppliers  will  be  instructed  to  make 
them  up  and  send  the  packages  to  a  certain  Calender  or  packer. 
Brownson's  clerks  will  inform  the  Calender  of  the  people  who 
are  thus  to  send  him  goods,  and  when  he  has  received  them  all 
he  will  have  a  case  made  exactly  to  contain  them.  This  case, 
duly  marked  and  numbered,  will  then  be  sent  down  to  the 
steamer  as  already  explained.  A  Mate's  Receipt  or  other 
acknowledgment  is  given  for  the  packages  as  they  are  taken  on 
board,  and  this  receipt  will  be  sent  to  Brownson's  office.  The 
Mate's  Receipt  relates  more  particularly  to  goods  received  by 


THE    EXPORT  OF    MERCHANDISE  177 

water.  For  goods  received  by  land  the  dock  officials  or 
perhaps  the  shipowners'  representatives  at  the  docks  may  sign 
an  acknowledgment.  If  goods  be  received  wet  or  broken  the 
Mate  will  write  or  stamp  on  his  receipt  "  some  cases  wet "  or 
"  some  in  bad  condition  "  ;  and  these  words  used  always  formerly 
to  be  and  ordinarily  still  are  transferred  by  the  shipowners  to 
the  bill  of  lading  before  they  sign  it.  As,  however,  such  an 
addition  may  possibly  prejudice  the  value  of  the  security  of  the 
bill  of  lading,  the  shipowners  sometimes  consent  to  leave  the 
bill  of  lading  "  clean  "  and  accept  a  letter  of  indemnity  from  the 
shippers,  in  case  the  consignees  should  endeavour  to  make  the 
ship  responsible.  This  vicious  practice  has,  however,  been  the 
subject  of  just  condemnation  in  financial  circles.  Sometimes 
all  the  Mate's  Receipts  are  posted  to  the  ship's  agents  at  port  of 
discharge. 

Meanwhile  Brownson  will  have  been  receiving  the  suppliers' 
invoices,  and  his  clerks  will  have  been  getting  in  the  transport 
bills  from  the  carriers.  They  will  also  have  taken  out  a  pro- 
visional insurance  at  Lloyd's  or  with  the  Companies.  The 
packages  will  have  been  measured  at  the  docks  and  the  total 
measurements  supplied  to  Brownson  and  the  shipowner.  The 
shipowner  will  then  make  out  his  "  freight  note  "  or  bill  for  the 
freight  on  the  packages,  at  so  much  per  ton  of  40  cubic  feet,  and 
send  it  in  to  Brownson.  If  flat  iron  or  nail-rods  or  other  non- 
measurement  goods  should  be  in  question,  then  the  freight  will 
be  calculated  on  the  ton  of  20  cwt.  The  exporting  merchant 
has  now  his  suppliers'  invoices,  the  carriers'  and  calender's  bills, 
the  freight  note  and — when  he  has  closed  his  insurance  for 
a  definite  amount — the  debit  note  for  the  premium.  He  has 
next  to  make  out  his  own  invoice  to  Sabapathy  Chitty.  This 
he  does  by  copying  out  in  detail  all  the  suppliers'  invoices,  with 
mark  and  number  of  each  case  shown  separately  in  the  margin. 
To  the  grand  total  of  the  suppliers'  invoices  he  will  add  all  the 
various  charges,  the  amount  of  the  freight  and  of  the  insurance 
premium,  and  to  the  total  so  arrived  at  he  will  add  his  own  com- 
mission— grand  total,  let  us  say,  ^1004.  ^s.  gd.  (He  will  of 
course  have  to  "pass  an  entry"  at  the  Customs,  showing  generally 
the  nature  of  the  goods  and  the  value  of  each  kind  separately.) 
o.  12 


178  THE    EXPORT   OF   MERCHANDISE 

While  all  this  has  been  in  jiro^ress  the  clerks  will  have 
written  out  the  bills  of  ladinjj— probably  three,  perhaps  two — to 
the  set,  each  bearing  a  sixpenny  stamp  ;  with  as  many  extra 
unstamped  copies  as  the  shipowners  may  require,  on  each  of 
which  extra  copies  is  written  "Captain's  copy."  These  extra 
copies  are  retained  by  the  shipowner.  Possibly  the  "  Captain's 
copies  "  may  be  written  out  by  the  shipowner's  clerks.  The  ship- 
owner has  also  to  "  pass  an  entry  "  for  the  clearance  of  his  ship, 
and  the  particulars  in  the  various  Captain's  copies  will  serve  for 
his  compilation  of  the  ship's  Manifest,  of  which  a  copy  has  to  be 
lodged  at  the  Customs  (p.  239).  By  comparing  the  Manifest 
with  the  entries  passed  by  the  various  shippers,  the  Customs  are 
able  to  ensure  the  shippers'  compliance  with  the  law.  The  bills 
of  lading  are  all  sent  in  to  the  shipowners  with — in  the  case  of 
barge  delivery — the  Mate's  Receipt,  if  this  be  required  :  the 
stamped  bills  of  lading  are  signed  and  returned  to  the  merchant, 
who  if  he  has  not  already  paid  the  freight  can  be  relied  on  to  do 
so  in  due  course.  Probably  by  this  time  also  Brownson's  insurance 
clerk  will  have  got  the  policy  from  the  underwriters.  So  that 
Brownson  is  now  in  this  position — he  has  shipped  the  goods  to 
Madras,  he  has  got  the  bills  of  lading  and  he  has  got  the  insurance 
policy.  So  far,  well ;  but  the  solid  fact  remains  that  the  consignee 
at  Madras  owes  him  ;{;"ioo4.  ^s.  gd.,  and  this  money  he  has  yet 
to  obtain. 

Sabapathy  Chitty  may,  however,  have  sent  him  skins  or 
indigo  to  sell,  in  which  case  he  has  either  these  goods  or  their 
sale  proceeds  to  set  against  the  ;^ioo4.  In  such  event  he  will 
endorse  the  bill  of  lading  and  send  it  to  Sabapathy  with  his  in- 
voice; a  second  copy  of  the  bill  of  lading  and  a  duplicate  of  the 
invoice  following  by  the  next  mail  in  case  of  the  first  miscarrying. 
Or  Sabapathy's  firm  may  be  wealthy  and  of  long  standing,  with 
mutual!)'  satisfactory  relations  long  existing  between  the  two 
firms.  It  maybe  an  understanding  that  each,  shipping  merchan- 
dise to  the  other,  shall  send  the  bills  of  lading  direct  and  at  the 
same  time  draw  a  bill  on  the  other.  In  such  event  Brownson 
will   turn   his  ^^1004   into  rupees  at  the  rate   of   the  day  and 

draw  on   Sabapathy  [)erhaps  at  30  days'  sight  against  <C3bu^ 

MADRAS 


THE   EXPORT   OF   MERCHANDISE  179 

50  packages  merchandise.  This  bill  Brownson  can  send  to  his 
agents  at  Madras  to  get  accepted,  and  in  due  course  paid,  by 
Sabapathy,  the  money  perhaps  to  be  invested  in  native  produce 
for,  or  to  pay  for  such  produce  already  purchased  by,  Brownson. 
Or  some  one  who  owes  money  in  Madras  may  buy  the  bill  on 
the  money  market  and  send  it  out  to  Madras  as  potential  cash. 
Or,  under  permanent  credit  arrangements  with  a  bank,  the  bill 
may  be  drawn  on  and  accepted  by  a  bank  and  so  become  at 
once  a  first  class  mercantile  bill  readily  saleable  on  the  money 
market.  So  that  if  Brownson  wants  the  money,  he  can  at  once 
discount  the  bill  for  cash.  But  possibly  Brownson  may  not 
know  overmuch  about  the  native  importer's  means  and  methods, 
and  may  feel  more  comfortable  to  have  the  cash  before  parting 
with  the  bills  of  lading.  In  such  event  he  can  send  bill  of 
exchange  and  bills  of  lading  to  his  own  agent  or  bankers  in 
Madras,  to  get  the  bill  accepted  and  paid,  the  bills  of  lading  not 
to  be  handed  over  till  then.  Or  he  may  "hypothecate"  the 
shipping  documents  with  an  Anglo-Indian  bank.  He  draws  his 
bill  in  rupees  on  the  importer  payable  to  order  of  the  bank, 
and  hands  it,  with  the  "collateral  securities,"  i.e.  the  bills  of 
lading  and  policy,  to  the  bank.  A  specimen  of  the  bill  is  given 
overleaf.  The  bank  (making  its  profit  on  the  rate  of  exchange) 
advances  him  two-thirds  of  the  amount  of  the  bill,  or  other 
agreed  percentage,  and  sends  the  documents  out  to  its  Madras 
branch,  and  when  the  bill  has  been  paid,  hands  Brownson  the 
balance  due.  These  are  some  of  the  various  methods  of 
payment :  they  will  serve  for  illustration. 

"  Collateral  Securities  "  ordinarily  means  bills  of  lading  and 
policy.  The  buyer  of  the  bill  has  as  his  primary  recourse  the 
personal  liability  of  the  drawer  of  the  bill  and  of  the  person  on 
whom  it  is  drawn.  Still,  accidents  will  happen,  and  there  is 
nothing  like  a  tangible  security.  If  the  goods  arrive,  the  holder 
of  the  unpaid  bill,  holding  at  the  same  time  the  bills  of  lading, 
will  be  entitled  to  delivery  of  the  goods  ;  if  they  be  lost,  he  has 
the  insurance  policy  :  so  that  with  the  "  collateral  securities  "  the 
drawer  may  fail  and  the  drawee  refuse  acceptance,  and  the  buyer 
of  the  bill  yet  be  protected  by  possession  of  the  collateral 
securities. 


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THE   EXPORT   OF   MERCHANDISE 


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THE    IMPORT   OF   MERCHANDISE  i8i 

As  regards  the  policy,  it  may  be  payable  in  London  or  with 
the  underwriters'  representatives  at  Madras.  In  the  latter  case 
it  will  be  issued  in  duplicate.  Mostly,  however,  it  remains 
payable  in  London.  Then  if  the  goods  are  insured  "  with 
average",  and  are  damaged,  Lloyd's  agent  will  be  called  in  to 
survey  them  and  to  grant  certificates  of  sea-damage,  sound  value, 
sale  proceeds,  etc.  Sabapathy  Chitty  will  send  all  these  "  average 
documents  "  home  to  Brownson,  who  will  then  hand  them  over 
to  an  average  adjuster  as  already  explained  (p.  131),  and  on 
obtaining  from  the  underwriters  the  money  shown  to  be  due 
under  the  adjustment  he  will  place  it  to  Sabapathy's  credit  or 
remit  him  the  amount. 

This  bill  will  be  drawn  in  three-fold  (or  perhaps  two-fold), 
the  Second  of  Exchange  (First  and  Third  unpaid)  and  the 
Third  of  Exchange  (First  and  Second  unpaid),  to  provide  against 
loss  or  miscarriage.  Whichever  form  arrives  first — presumably 
the  First  of  Exchange — will  be  presented  for  acceptance,  and 
the  others  will  remain  with  the  shipping  documents.  If  it  be 
left  at  Sabapathy's  office  on  (say)  30th  November,  then,  in 
accepting  it,  he  will  write  across  the  face,  say. 

Accepted  30th  Nov.  191 3 
Payable  at  the  Bank  of  Madras 
Sabapathy  Chitty  &  Co. 

The  bank's  clerk  will  call  for  it  next  day,  and  the  bank  will 
then  retain  possession  of  it  until  it  falls  due,  30  days  after 
acceptance  (or  a  few  supplementary  "  days  of  grace "  may  be 
locally  customary),  unless  Sabapathy  takes  it  up  before  it  is  due, 
under  discount,  and  this  he  will  probably  do  if  the  ship  should 
arrive  before  the  due  date,  because  otherwise  the  goods  will  be 
put  in  store  and  incur  rent  and  charges  to  his  debit. 

The  Import  of  Merchandise 

Export  at  one  end  is  Import  at  the  other,  and  much  of  the 
process  as  regards  the  one  will  serve  to  explain  the  position  as 
regards  the  other.  We  have,  however,  just  watched  Brownson's 
procedure  in  shipping  goods  to  his  Indian  client :   let  us  now 


i82  THE    IMPORT   OF    MERCHANDISE 

observe  his  dealings  with  native  produce  sent  to  him  by  the 
latter.  He  has,  of  course,  to  receive  or  obtain  the  bills  of  lading. 
These  may  have  been  sent  to  him  direct,  but  let  us  assume  that 
the  shipper  has  drawn  on  him  and  attached  the  collateral 
securities  to  the  draft.  Krownson,  opening  his  mail,  finds  that 
Sabapathy  has  sent  him  a  parcel  of  indigo  and  drawn  ;^836 
against  the  shipment,  on  the  basis  generally  agreed  between  the 
parties,  invoice  of  weights  and  qualities  being  enclosed. 

Now  let  us  follow  the  draft,  from  its  arrival  at  the  office  of 
the  London  firm  or  bankers  in  whose  favour  it  has  been  drawn 
or  to  whom  it  has  been  endorsed.  Let  us  assume  that  it  is  in 
the  holding  of  a  bank.  The  bank  enters  all  the  bills  received 
by  the  mail  into  a  "  Bills  Receivable  "  book,  and  the  bills  are  at 
once  handed  over  to  a  clerk,  often  known  as  a  "  walk  clerk  ",  to 
leave  for  acceptance.  He  starts  out  with  a  wallet  of  them, 
perhaps  attached  to  his  waist  by  a  steel  chain.  On  arriving 
at  Brownson's  office  he  hands  in  Sabapathy 's  bill  without  com- 
ment and  proceeds  on  his  round.  One  of  Brownson's  clerks 
then  copies  out  the  particulars  of  the  bill  on  to  a  form,  and  the 
same  day  or  early  the  next  morning  proceeds  to  the  bank  with 
these  particulars.  Producing  them,  he  asks  to  be  shown  the 
collateral  securities,  the  bills  of  lading  and  policy — and  these  are 
handed  to  him  for  his  examination.  Finding  them  all  apparently 
in  order,  he  completes  his  particulars  accordingly.  The  bill, 
with  the  particulars  and  Sabapathy's  letter  and  invoice,  is  then 
at  once  placed  before  Brownson.  He,  finding  all  in  order, 
then  accepts  the  bill.     He  writes  across  it 

Accepted  (say)  ist  July   191 3 

Payable  at  (say)  Bank  of  England  (his  bankers), 

(signed)  Brownson  &  Co. 
On  the  afternoon  following  the  day  on  which  he  left  the  bill 
for  acceptance  the  holder's  clerk  will  be  round  again,  his  demand 
for  the  accepted  bill  and  its  delivery  to  him  following  a  stereo- 
typed routine.     On  entering  Brownson's  office  he  calls  out — 

"Bill  left?" 
on  which  the  office  clerk  having  charge  of  the  bills  returns — 

"  How  much?" 


THE    IMPORT   OF   MERCHANDISE  183 

On  being  told  the  amount  of  the  bill,  he  demands — 

"  What's  the  mark  ?  " 

to  which  the  reply  will  be,  say — 

"  A.Z.  in  an  oval  at  the  left-hand  top  corner." 

Finding  Sabapathy's  bill  for  ;^836  to  be  in  fact  so  marked  by 
the  holder,  the  clerk  hands  it  over  to  the  applicant,  enquiring 

"In  whose  hands  ?  " 

The  name  of  the  holder  being  thus  ascertained,  it  is  posted  into 
Brownson's  "  Bills  Payable "  book  with  the  entries  relating 
to  the  bill,  which  then  goes  back  to  the  bank,  to  be  locked  in 
the  holder's  safe  till  it  falls  due  or  is  taken  up  under  discount. 

If  the  bill  is  drawn  at  30  days'  sight,  it  will  be  payable — 
three  days'  grace  being  added — 3rd  August.  On  that  day, 
unless  it  shall  have  been  previously  "  taken  up ",  the  holder, 
unless,  as  is  usual,  Brownson  shall  hand  him  a  cheque  in 
exchange,  will  pay  it  into  his  own  bank,  and  the  bill  will  be 
paid  by  Brownson's  bankers,  in  virtue  of  his  accepting  signature. 

Until  the  bill  shall  have  been  taken  up  or  paid  at  maturity, 
Brownson  will  be  in  this  position  : — A  parcel  of  indigo  is  on  its 
way  to  London  in  the  Alpha,  to  be  delivered  to  the  holder  of  the 
bill  of  lading  :  but  Brownson  cannot  get  possession  of  the  bills  of 
lading  till  he  has  paid  the  bill  which  he  has  already  accepted. 
If  the  ship  should  not  be  due  till  after  3rd  August  he  can  let  the 
bill  run  till  its  due  date,  or  he  can  take  it  up  under  discount 
before  that  date.  In  either  case  when  he  pays  the  bill — and  not 
before — he  receives  the  collateral  securities.  Then,  when  the 
ship  arrives,  he  endorses  one  copy  of  the  bill  of  lading  as  being 
himself  the  party  entitled  to  the  goods,  and  lodges  it  at  the  office 
of  the  dock  which  the  ship  enters.  He  may  let  the  goods  lie  in 
the  dock  warehouse  at  his  disposal,  or  he  may  give  delivery  of 
them  to  one  of  the  wharf  proprietors  to  be  warehoused  to  his 
order.  On  the  other  hand,  the  ship  may  be  delayed  and  the 
bill  fall  due  long  before  he  can  get  the  goods.  In  such  event,  if 
it  should  suit  him  to  do  so,  he  can  probably  obtain  from  his 
bankers  or  produce-brokers  or  wharfingers  an  advance  against  his 
deposit  of  the  duly  endorsed  bills  of  lading  (complete  set)  and 


I84  THE    IMPORT   OF   MERCHANDISE 

the  insurance  policy.  Or,  havinij^  already  lodged  his  hill  of 
ladin{^  after  arrival  of  the  goods,  he  can  similarly  obtain  an 
advance  against  the  goods  by  means  of  Dock  Warrants  or 
Warehouse-keepers'  Certificates — much  the  same  thing.  It  is 
open  to  an  importer  to  let  his  goods  lie  in  warehouse  until 
presentation  of  a  "Deliver)'  Order"  signed  by  himself;  or  he 
may  request  the  warehouse  peojile  to  provide  him  with  a  Dock 
Warrant  or  series  of  warrants  describing  the  goods  and  under- 
taking to  deliver  them  to  the  order  of  the  depositor  as  endorsed 
on  the  W^arrant.  Then,  whoever  holds  the  Warrants,  endorsed 
by  the  depositor,  is  entitled  to  delivery,  just  as  in  the  case  of 
goods  on  board  ship  and  the  holder  of  the  Hill  of  Lading. 
Banks  and  others  dail}'  make  cash  advances  against  such  security. 

The  goods  having,  however,  been  warehoused  on  Brownson's 
account,  he  will  want  to  be  fully  informed  respecting  their 
description,  quality  and  value.  To  obtain  this  he  makes  out 
a  Sampling  Order  or  Inspecting  Order  to  his  produce  broker, 
probably  in  Mincing  Lane  or  thereby.  If  the  goods  can  be 
judged  by  sample,  the  broker  will  forward  the  Sampling  Order 
to  the  warehouse  keeper,  who  will  send  him  samples  accordingly. 
If  it  is  necessary  to  inspect  them,  he  will  visit  the  warehouse 
and  see  the  goods  displayed.  He  will  then  make  out  a  written 
report  and  send  it  to  Brownson.  Brownson  and  he  will  then 
decide  whether,  having  regard  to  the  condition  of  the  market, 
the  goods  should  be  sold  at  once,  or  whether  they  should  be 
held  for  better  prices  or  put  up  at  the  next  public  sale  of  similar 
goods.  Meanwhile  the  warehouseman  will  have  made  out  a 
Landing  Account  showing  marks,  numbers  and  gross  and  net 
weights  of  the  packages,  and  if  necessary  their  measurements. 

When  the  sale  has  been  effected,  the  produce  broker  will 
make  out  his  Account  Sale,  deducting  his  brokerage,  and  on  the 
buyer's  payment  for  the  goods  the  broker  will  obtain  a  Delivery 
Order  from  the  merchant  which,  superseding  the  bill  of  lading, 
will  transfer  them  into  the  buyer's  name.  Brownson  has  first, 
of  course,  to  pay  the  freight,  if  not  paid  in  advance,  for  the  ship- 
owners in  such  event  will  have  placed  the  goods  under  stop  for 
freight  and  must  release  this  stoj)  before  the  warehouse  people 
will  act  on  the  importer's  delivery  order. 


THE    IMPORT   OF   MERCHANDISE  185 

Brownson  has  now  received  the  net  proceeds  from  the 
produce  broker,  with  the  "account  sale",  and  is  in  a  position  to 
make  out  his  own  account  sale  to  send  to  Sabapathy.  This  he 
does  by  copying  out  the  broker's  account  sale  and  deducting 
from  the  balance  the  freight  (if  any)  and  the  dock  or  warehouse 
charges  (notes  of  which  have  to  be  got  in)  incurred  up  to  the 
date  when  the  goods  are  transferred  into  the  buyer's  name.  He 
then  deducts  his  own  commission,  and  the  final  net  proceeds, 
after  deduction  of  the  amount  of  the  bill  which  Sabapathy  drew 
against  them,  will  be  on  Sabapathy's  account.  Sabapathy  may 
possibly,  however,  prove  to  have  over-drawn  against  the  goods, 
in  which  case  Brownson  will  have  money  to  get  back.  Assuming, 
however,  that  there  is  a  surplus,  this  will  have  to  be  dealt  with  in 
accordance  with  Sabapathy's  instructions.  He  may  have  already 
ordered  goods,  which  are  to  be  paid  for  out  of  the  surplus  ;  or 
he  may  want  the  money  to  be  sent  to  some  firm  or  manufacturer 
from  whom  he  has  ordered  direct ;  or  if  the  money  be  a  sub- 
stantial or  considerable  sum  he  may  require  it  to  be  sent  out  to 
him  in  gold — "  heavy  king's  sovereigns  "  he  will  say,  or  used  to 
say  in  the  days  when  sovereigns  minted  in  the  Colonies  were, 
for  some  reason,  not  favourably  regarded  by  him.  He  wants  it  in 
gold,  gold  to  be  hoarded,  perhaps,  or  buried  or  *'  bangled  "  by  the 
up-country  produce  growers,  and  these  have  no  notion  of  being 
put  off  with  worn  sovereigns.  The  bankers'  clerks,  therefore,  are 
requested  by  Brownson  to  pick  out  and  reject  any  sovereigns 
which  might  result  in  Sabapathy's  unfavourable  comments  to 
him.  Sabapathy  may  be  one  of  many  like  him,  all  Brownson's 
clients ;  their  goods  may  all  be  put  up  at  the  public  sales 
together,  and  there  may  be,  on  a  rising  market,  many  lots  of 
"heavy  king's  sovereigns"  to  get  from  the  bank.  If  so,  Brown- 
son's  clerks  will  have  ordered  from  the  carpenter  small  strong 
boxes,  each  to  contain  its  own  number  of  sovereigns.  Perhaps 
the  boxes  will  all  be  tin-lined,  in  which  case  the  solderer  and 
carpenter  will  attend  at  Brownson's  office  to  fasten  them  down, 
each  with  its  own  canvas  bag  of  sovereigns,  while  two  of 
the  merchant's  clerks  look  on.  The  boxes  may  also  be  iron- 
hooped  and  sealed  in  countersinkings.  Having  been  addressed, 
they  will  be  insured  and  handed  to  the  mail  line  against  receipts 


i86  THE    IMPORT   OF    MERCHANDISE 

or  bills  of  lading,  which  receipts  will  be  posted  to  Sabapathy  and 
his  friends,  who  will  perhaps  pass  the  money  on  to  the  local 
agriculturalists  or  growers.  They,  in  the  dead  of  a  moonless 
night,  may  bank  it  by  burying  it  under  a  sacred  peepul  tree,  with 
Vishnu's  spirit  to  watch  over  it. 

India  is  in  the  exceptional  position  of  exporting  much  more 
than  she  imports  :  consequently  the  excess  value  of  her  exports 
is  sent  back  to  her  in  gold,  on  which  there  is  no  import  duty. 
It  is  said — and  also  denied — that  approximately  the  equivalent  of 
the  whole  of  the  gold  dug  up  in  the  Transvaal  eventually  finds 
its  way,  via  England,  to  India,  there  to  a  great  extent  to  be 
once  more  buried  or  bangled  ;  which,  so  far  as  the  world's  gold 
supplies  are  concerned,  is  much  the  same  thing.  There  are 
those  who  hold  that  the  system  may  one  day  have  disastrous 
consequences  for  a  depleted  European  money  market. 


"Trading  with  the  Enemy" 

"  When  war  is  entered  upon,  every  individual  of  the  nations 
engaged  is  considered  to  be  involved  in  the  hostilities,  since 
every  man  is  considered  to  be  a  party  to  the  acts  of  his  own 
government.... The  effect  of  this  taint  of  hostilities,  as  regards 
individuals,  is  to  stop  all  intercourse  between  citizens  of  the 
nations  at  war.  The  individual  members  of  the  nations  are 
embarked  in  one  common  bottom  and  must  share  one  common 
fate.  Therefore,  all  trading  with  the  common  enemy  becomes 
at  once  illicit,  and  is  usually  so  proclaimed  on  the  outbreak  of 
hostilities.... The  doctrine  is  well  settled  by  the  British  Courts 
that  there  cannot  exist  at  the  same  time  a  war  for  arms  and 
a  peace  for  commerced"  Contracts  made  with  enemy  subjects 
are  null  and  void  in  law,  and  anj'  rights  of  action  against  such 
subjects  existing  prior  to  the  outbreak  of  war  are  held  in  suspense 
till  resumption  of  peace. 

It  is,  of  course,  always  open  to  the  State  to  grant,  notwith- 
standing, special  trading  licences  ;  but  the  former  conditions  in 
which    such   licences  were   necessary  and    common    have  now, 

1  The  writer's  Declaration  of  War ;    a  Survey  of  the  position  of  Belligerents  and 
Neutrals,  with  relative  considerations  of  Shipping  and  Marine  Insurance  during  War 


"TRADING   WITH    THE    ENEMY"  187 

presumably,  passed  away.  It  was  at  one  time  natural,  on  the 
outbreak  of  war,  for  a  belligerent  State  to  seize  all  the  enemy's 
shipping  within  the  national  ports — the  seizure  might,  indeed 
be  made  first  and  war  declared  afterwards — but  times  have 
greatly  changed.  In  the  Crimean  War  we  established  a  new 
and  highly  important  precedent  which,  more  or  less  enlarged 
upon,  has  been  followed  by  practically  every  belligerent  since. 
On  the  day  after  the  outbreak  of  the  war  referred  to,  a  Royal 
Proclamation  was  issued  ordering  an  embargo  on  all  Russian 
vessels  then  or  which  might  thereafter  arrive  in  Her  Majesty's 
dominions,  together  with  all  persons  or  effects  thereon.  But  by 
a  second  proclamation  of  the  same  date  it  was  declared  that  all 
Russian  merchant  vessels  then  in  the  dominions  should  be 
allowed  until  loth  May,  a  period  of  six  weeks,  for  loading  their 
cargoes  and  departing,  such  vessels  to  be  free  from  arrest  at  sea 
unless  carrying  any  officer  in  the  naval  or  military  service  of  the 
enemy,  any  article  contraband  of  war,  or  any  despatch  of  or  to 
the  Russian  Government.  By  another  proclamation  it  was 
declared  that  any  Russian  merchant  vessel  which  prior  to  the 
date  of  the  said  order  had  sailed  for  any  port  in  Her  Majesty's 
dominions  should  be  permitted  to  enter  and  discharge  at  such 
port  and  thereafter  depart  unmolested,  and  be  permitted  to 
proceed  to  any  port  not  blockaded.  Further  extensions  were 
granted  later.  "  Days  of  Grace  and  Immunity  "  proclamations 
have  ever  since,  as  already  stated,  closely  followed  any  declaration 
of  war.  The  new  departure  established  by  us  in  the  case  of 
a  non-naval  Power,  as  was  our  adversary  of  1854,  cannot,  however, 
be  regarded  as  a  precedent  for  all  time  and  in  every  case.  At 
the  Hague  Conference  of  1907,  indeed,  an  attempt  was  made  to 
crystallise  international  law  in  such  a  sense.  Our  representatives 
were,  however,  instructed  that  it  would  be  in  the  general  interests 
of  this  country  to  maintain  the  utmost  liberty  as  regards  the 
granting  or  refusing  of  days  of  grace  ;  and,  probably  on  this 
account,  in  the  6th  Annexe  of  the  Convention,  the  subject  is  dealt 
with  very  guardedly.  The  Annexe  confines  itself  to  a  pious 
declaration  that  "it  is  desirable"  that  enemy  ships  in  belligerent 
ports  should  be  allowed  to  depart  freely.  It  may  be  as  well  to 
give  the  actual  wording  : 


i88  TRADING    WITH    THE    ENEMY" 

Article  I 

"  When  a  merchant-ship  belonging  to  one  of  the  belHgerent 
powers  is  at  the  cointnencement  of  hostiUties  in  an  enemy  port, 
it  is  desirable  that  it  should  be  allowed  to  depart  freely,  either 
immcdiatel)',  or  after  a  reasonable  number  of  days  of  grace,  and 
to  proceed,  after  being  furnished  witii  a  pass,  direct  to  its  port  of 
destination  or  any  other  port  indicated. 

The  same  rule  should  apply  in  the  case  of  a  ship  which  has 
left  its  last  port  of  departure  before  the  commencement  of  the 
war  and  entered  a  port  belonging  to  the  enemy  while  still  ignorant 
that  hostilities  had  broken  out. 

Article  II 

"A  merchant-ship  unable,  owing  to  circumstances  o{ force 
viajeiire,  to  leave  the  enemy  port  within  the  period  contemplated 
in  the  above  Article,  or  which  was  not  allowed  to  leave,  cannot 
be  confiscated. 

The  belligerent  may  only  detain  it,  without  payment  of  com- 
pensation, but  subject  to  the  obligation  of  restoring  it  after  the 
war,  or  requisition  it  on  payment  of  compensation. 

Article  III 

"Enemy  merchant-ships  which  left  their  last  port  of  departure 
before  the  commencement  of  the  war,  and  are  encountered  on 
the  high  seas  while  still  ignorant  of  the  outbreak  of  hostilities, 
cannot  be  confiscated.  They  are  only  liable  to  detention  on  the 
understanding  that  they  shall  be  restored  after  the  war  without 
compensation,  or  to  be  requisitioned,  or  even  destroyed,  on 
payment  of  compensation,  but  in  such  case  provision  must  be 
made  for  the  safety  of  the  persons  on  board  as  well  as  the  security 
of  the  ship's  papers. 

After  touching  at  a  port  in  their  own  country  or  at  a  neutral 
port,  these  ships  are  subject  to  the  laws  and  customs  of  maritime 
war. 

Article  IV 

"  Enemy  cargo  on  board  the  vessels  referred  to  in  Articles  I 
and  H  is  likewise  liable  to  be  detained  and  restored  after  the 


TRADE  IN  CONTRABAND  GOODS     189 

termination  of  the  war  without  payment  of  compensation,  or  to 
be  requisitioned  on  payment  of  compensation,  with  or  without 
the  ship. 

The  same  rule  applies  in  the  case  of  cargo  on  board  the 
vessels  referred  to  in  Article  III. 

Article    V 

"  The  present  Convention  does  not  affect  merchant-ships 
whose  build  shews  that  they  are  intended  for  conversion  into 
war-ships." 

But  it  seems  an  impossible  proposition  that  if  some  day  we 
should  unfortunately  be  suddenly  plunged  into  war,  we  should 
allow  our  own  ships,  in  virtue  of  our  enemy's  proclamation  of 
indemnity,  to  deliver  to  him  supplies  of  which  our  own  people 
might  be  in  urgent  need. 


Trade  in  Contraband  Goods 

The  subject  of  Contraband  is  highly  important  and  far- 
reaching,  and  its  discussion  at  length  is  not  for  a  treatise  such  as 
this.  At  the  same  time  some  reference  may  fitly  here  be  made 
to  it,  as  it  is,  after  all,  a  subject  of  trade.  Trade  in  contraband 
goods  involves  a  conflict  of  rights  ;  the  neutral  right  to  carry  on 
trade  with  a  friend,  whether  the  friend  be  at  peace  or  at  war : 
the  belligerent  right  to  cut  off  from  his  adversary  all  supplies,  by 
whomever  sent,  which  might  strengthen  the  adversary's  power 
of  offence  or  defence.  Take  the  case  of  States  A,  B,  and  C. 
The  traders  of  State  A  have,  perhaps,  long  been  in  the  habit  of 
supplying  State  B  with  big  guns,  rifles,  ammunition  or  military 
stores  or  equipments.  War  breaks  out  between  B  and  C. 
"Why",  demands  State  A,  "should  my  manufacturers  and 
industrial  folk  lose  their  important  export  trade  with  B,  just 
because  B  and  C  get  to  fisticuffs  ?  "  State  C  on  the  other  hand 
complains  bitterly  that  A  should  be  so  unfriendly  and  so  lost  to 
the  sense  of  neutral  obligations  as  to  supply  his — C's — enemies 
with  warlike  equipment  to  be  used  against  him,  C.  State  A 
replies  that  this  may  be  Cs  view  of  the  situation,  but  that  it 


I90     TRADE  IN  CONTRABAND  GOODS 

would  be  just  as  unfriendly  or  un-neutral  to  />  to  deprive  him  of 
his  customary  military  supplies,  at  a  most  critical  moment. 
State  .'/  cannot,  in  fact,  either  permit  or  prohibit  the  shipment 
of  contraband  to  one  of  the  belligerents  without  injury  to  the 
other.  l^Vom  this  point  of  view,  therefore,  the  question  cannot 
be  decided  by  reference  to  principles  of  right  or  wrong.  The 
best  solution  is  for  belligerents  to  leave  the  neutral  State,  as 
such,  out  of  the  controversy ;  and  not  expect  it  to  prohibit 
its  traders  from  carrying  on  their  customary  business  in  their 
customary  way.  And  in  fact  Article  VII  of  the  Hague  Confer- 
ence, 1907,  declares  that  "A  neutral  Power  is  not  called  upon  to 
prevent  the  export  or  transport,  on  behalf  of  one  or  other  of  the 
belligerents,  of  arms,  munitions  of  war,  or,  in  general,  of  anything 
which  can  be  of  use  to  an  army  or  a  fleet."  On  the  other  hand, 
on  its  part,  a  neutral  State  must  not  regard  it  as  unfrienglly  if 
the  aggrieved  belligerent  takes  the  law  into  his  own  hands 
against  the  individuals  concerned  in  the  noxious  trade,  to  the 
extent  of  cutting  off  or  confiscating  any  of  their  contraband 
shipments  he  can  manage  to  intercept.  Pages  could  of  course 
be  written — volumes  have  been  written — on  the  subject,  but 
practically  the  foregoing  sums  up  the  situation,  the  fact  that  such 
a  situation  may  give  and  sometimes  in  the  past  has  given  rise  to 
international  friction  notwithstanding. 

On  the  outbreak  of  war,  the  first  thing  for  the  neutral  lookers-on 
amongst  the  States  is  to  declare  their  neutrality  and  to  require  the 
co-operation  of  the  national  subjects.  This  is  done  by  a  Proclama- 
tion of  Neutrality.  In  our  own  case  the  Royal  Proclamation  is 
in  stereotyped  language.  It  begins  by  reciting  the  state  of  war 
and  declaring  amicable  relations  with  both  parties  to  it,  and 
declares  the  intention  of  the  Sovereign  firmly  to  maintain  a 
strict  and  impartial  neutrality.  The  national  subjects  are, 
therefore,  strictly  charged  to  govern  themselves  accordingly. 
More  especially  they  are,  to  the  contrary  at  their  peril,  to 
pay  strict  heed  to  the  provisions  of  the  Foreign  Enlistment  Act, 
which  is  recited  in  nearly  all  its  length.  The  Proclamation  then 
proceeds — or  until  recently  proceeded — with  these  pregnant 
words : 

And  We  hereby  further  warn  all  Our  loving  subjects,  and  all  persons 


TRADE  IN  CONTRABAND  GOODS     191 

whatsoever  entitled  to  Our  protection,  that  if  any  of  them  shall  presume  in 
contempt  of  this  Our  Royal  Proclamation,  and  of  Our  high  displeasure,  to 
do  any  acts  in  derogation  of  their  duty  as  subjects  of  a  neutral  Sovereign  in 
a  war  between  other  States,  or  in  violation  or  contravention  of  the  law  of 
nations  in  that  behalf,  as  more  especially  by  breaking,  or  endeavouring  to 
break,  any  blockade  lawfully  and  actually  established  by  or  on  behalf  of 
either  of  the  said  States,  or  by  carrying  officers,  soldiers,  or  despatches,  arms, 
ammunition,  military  stores  or  materials,  or  any  article  or  articles  considered 
and  deemed  to  be  contraband  of  war  according  to  the  law  or  modern  usages 
of  nations,  for  the  use  or  service  of  either  of  the  said  States,  that  all  persons 
so  offending,  together  with  their  ships  and  goods,  will  rightfully  incur  and  be 
justly  liable  to  hostile  capture,  and  to  the  penalties  denounced  by  the  law  of 
nations  in  that  behalf. 

And  We  do  hereby  give  notice  that  all  Our  subjects  and  persons  entitled 
to  Our  protection  who  may  misconduct  themselves  in  the  premises  will  do 
so  at  their  peril,  and  of  their  own  wrong  ;  and  that  they  will  in  no  wise 
obtain  any  protection  from  Us  against  such  capture,  or  such  penalties  as 
aforesaid,  but  will,  on  the  contrary,  incur  Our  high  displeasure  by  such 
conduct. 

Naturally,  any  one  reading  this  would  promptly  but  quite 
erroneously  arrive  at  the  conclusion  that  the  carriage  of  contra- 
band is  forbidden  as  being  contrary  to  the  law  of  nations.  On 
the  publication  of  the  Royal  Proclamation  on  the  occasion  of 
the  war  in  1904  between  Russia  and  Japan,  Professor  Holland 
wrote  to  the  Times  (14  Dec.)  raising  the  very  pertinent  question 
"  whether  such  condensed  and  therefore  incorrect,  though  very 
commonly  employed,  expressions  as  imply  that  breach  of  block- 
ade and  carriage  of  contraband  are  '  in  violation  of  the  law  of 
nations '  and  are  liable  to  '  the  penalties  denounced  by  the  law 
of  nations '  should  not  be  replaced  by  expressions  more  scientifi- 
cally correct.  The  law  of  nations  neither  prohibits  the  acts  in 
question  nor  prescribes  penalties  to  be  incurred  by  the  doers  of 
them.  What  it  really  does  is  to  define  the  measures  to  which 
a  belligerent  may  resort  for  the  suppression  of  such  acts  without 
laying  himself  open  to  remonstrance  from  the  neutral  Government 
to  which  the  traders  implicated  owe  allegiance."  Presumably  as 
the  result  of  this  timely — or,  shall  we  say,  belated  .<• — protest  the 
paragraphs  already  quoted  have  since  taken  the  following  form  : 

And  we  do  further  warn  and  admonish  all  Our  loving  Subjects,  and  all 
Persons  whatsoever  entitled  to  our  Protection,  to  observe  towards  each  of  the 
aforesaid  Powers,  their  Subjects  and  Territories,  and  towards  all  Belligerents 


192     TRADE  IN  CONTRABAND  GOODS 

whatsoever  with  whom  Wc  are  at  Peace,  the  Duties  of  Neutrality  ;  and  to 
respect,  in  all  and  each  of  them,  the  Exercise  of  Bcllijjerent  Rights. 

And  we  do  further  warn  all  Our  loving  Subjects,  and  all  Persons  whatso- 
ever entitled  to  our  Protection,  that  if  any  of  them  shall  presume,  in  contempt 
of  this  Our  Royal  Proclamation,  to  do  any  acts  in  derogation  of  their  Duty 
as  Subjects  of  a  Neutral  Power  in  a  war  between  other  Powers,  or  in  violation 
or  contravention  of  the  Law  of  Nations  in  that  behalf,  all  Persons  so  offending 
will  rightfully  incur  and  be  justly  liable  to  the  Penalties  denounced  by  such 
Law. 

And  we  do  hereby  give  Notice  that  all  our  Subjects  and  Persons  entitled 
to  our  Protection  who  may  misconduct  themselves  in  the  Premises  will  do 
so  at  their  Peril,  and  of  their  own  Wrong  ;  and  that  they  will  in  no  wise 
obtain  any  Protection  from  Us  against  such  Penalties  as  aforesaid, 

the  reference  to  breach  of  blockade  and  carriage  of  contraband 

being  very  properly  omitted. 

The  Foreign  Enli.stment  Act  is  entirely  outside  the  subject 
of  contraband.  It  aims  at  a  different  class  of  offences — or, 
rather,  class  of  acts — altogether.  It  is  aimed  essentially  at  illegal 
enlistment  or  engagement  in  the  military  or  naval  .service  of 
a  belligerent  State  at  peace  with  this  country  ;  at  illegal  ship- 
building and  illegal  expeditions  ;  at  illegal  equipment  and  fitting 
out  of  expeditions,  and  at  illegal  assi.stance  to  captors  of  prize 
brought  within  the  dominions. 

As  a  matter  of  fact  the  State  never  does  interfere  to  prevent 
the  shipment  of  contraband.  The  Government  may  prohibit 
and  from  time  to  time  has  prohibited  the  export  of  warlike  stores 
and  materials — this,  not  because  such  stores  are  contraband, 
but  because  of  the  desirability  either  of  retaining  them  for  the 
national  u.se  or  of  preventing  their  transmission  to  the  .sovereign's 
enemies.  What  goods  are  or  are  not  within  the  definition  of 
contraband  and  what  are  the  penalties  which  a  captor  may  inflict 
on  the  property  of  those  engaged  in  carrying  them  may,  so  far 
as  there  is  any  settled  international  law  on  the  subject  at  all,  be 
learnt  from  the  numerous  treatises  and  text-books.  One  of  the 
objects  of  the  proposed  "  Declaration  of  London  "  was,  so  far  as 
possible,  to  secure  a  common  agreement  on  this  point. 

Trading  Contracts  and  War 

In  view  of  what  has  been  already  stated  (p.  i86)  it  will  be 
evident  that  the  effect  of  war  must  be  immediately  to  render 


TRADING   CONTRACTS   AND   WAR  193 

void  or  to  suspend  the  operation  of  all  contracts  between  the 
national  subjects  of  the  States  which  are  parties  to  it.  Partner- 
ships between  such  adverse  subjects  are  absolutely  extinguished 
by  hostilities.  With  respect  to  public  loans,  however,  the 
national  honour  is  involved  ;  and,  as  regards  the  payment  of 
interest  during  hostilities,  these  should  not  be  allowed  to  interfere 
with  the  prompt  and  regular  discharge  of  an  obligation  founded 
on  the  national  good  faith.  All  mercantile  transactions  contrary 
to  the  national  war  policy  are  bad  in  law.  Contracts  of  affreight- 
ment and  ocean  carriage  being  frequently  entered  into  at  a 
considerable  period  before  their  actual  performance  can  be 
commenced,  are  especially  liable  to  be  interfered  with  by 
the  outbreak  of  hostilities.  If  the  contract  cannot  be  fulfilled 
without  trading  with  the  king's  enemies,  it  is  ipso  facto  dissolved. 
If  a  shipowner  carries  a  cargo  in  circumstances  which  convict 
him  of  the  offence  of  trading  with  the  enemy,  the  Courts  will 
not  assist  him  in  a  claim  for  freight  so  earned.  Freight  is  "  the 
reward  which  the  law  entitles  a  plaintiff  to  receive  for  bringing 
goods  lawfully  into  this  country  upon  a  legal  voyage."  But 
mere  apprehension  on  the  part  of  a  shipowner  that  he  will  be 
prevented  from  fulfilling  his  contract  by  the  outbreak  of  war  will 
not  justify  him  in  a  breach  of  contract.  He  must  go  on  till 
war  does  in  fact  intervene.  It  is  of  course  open  to  shipowners 
to  include  in  their  contracts  of  affreightment  such  conditions  as 
shall  protect  them  in  the  case  of  sudden  emergencies,  and  the 
presence  or  exact  wording  of  such  provisions  may  on  occasion 
be  all-important.  A  shipping  contract  may,  of  course,  also  be 
dissolved  by  operation  of  war  in  which  the  shipowner's  country 
is  not  directly  concerned.  If,  for  example,  the  contract  shall 
require  fulfilment  at  a  port  which  is  subsequently  declared  to  be 
blockaded,  the  shipowner,  if  the  blockade  seems  likely  to  continue, 
may  decline  to  send  his  ship  there  :  he  is  absolved  from  perform- 
ance of  his  contract  (p.  80).  Very  nice  questions  are,  however, 
apt  to  arise  in  cases  of  the  kind,  and  in  their  legal  determination 
much  will  depend  both  on  the  facts  and  on  the  ipsissima  verba  of 
the  contract.  But  "  an  apprehension  of  capture  founded  on  cir- 
cumstances calculated  to  affect  the  mind  of  a  master  of  ordinary 
courage,  judgment  and  experience,  will  justify  delay."  A  master 
o.  n 


194  TRADING   CONTRACTS    AND   WAR 

had  held  up  liis  vessel  in  a  port  of  distress  for  some  three  months, 
throiij^h  risk  of  capture  if  he  proceeded  on  his  voyage.  It  was  in 
1870.  A  German  vessel  was  in  question,  under  charter  from 
Vancouver  Island  to  the  United  Kingdom,  and  she  heard  that 
war  had  broken  out  with  PVance,  the  vessel  then  being  at 
Valparaiso  under  repair.  The  charterparty  excepted  the  Act 
of  God,  the  Queen's  enemies  and  restraints  of  princes  and  rulers. 
The  delay  was  held  to  be  warranted  by  the  facts.  But  in  any 
event  it  seems  not  unreasonable  to  suppose  that  even  without 
the  exceptions  named  the  master  would  have  been  justified  in 
his  action,  on  the  ground  that  he  was  entitled  to  take  necessary 
measures  to  defeat  a  danger  which  threatened  the  fulfilment  of 
his  contract  and  the  safety  of  his  ship  and  cargo,  several  French 
cruisers  being  in  tiie  neighbourhood  of  the  port. 

"  It  seems  obvious,"  said  Mellish,  L.J.,  in  another  case,  "that 
if  a  master  receives  credible  information  that  if  he  continues  in 
the  direct  course  of  his  voyage  his  ship  will  be  exposed  to  some 
imminent  peril  ;  as  for  instance,  that  there  are  pirates  in  his 
course,  or  icebergs  or  other  dangers  of  navigation  ;  he  must  be 
justified  in  pausing  and  deviating  from  the  direct  course,  and 
taking  any  step  which  a  prudent  man  would  take  for  the  purpose 
of  avoiding  danger'."  In  this  second  case  the  Teutonia,  a  German 
vessel,  was  carrying  a  cargo  of  nitrate  for  orders  to  a  port  between 
Havre  and  Hamburg.  She  received  orders  to  discharge  at 
Dunkirk,  and  whilst  on  the  way  the  master  learnt  that  France 
and  Germany  were  on  the  eve  of  war.  Thereupon  he  proceeded 
to  Dover,  where  he  learnt  that  war  had  been  declared.  The  Court 
held  that  he  was  within  his  rights  in  discharging  at  Dover  and 
claiming  freight.  He  was  justified  in  what  he  did,  and  could 
not  have  gone  to  Dunkirk  without  exposing  himself  to  penalties 
for  trading  with  his  country's  enemies. 

As  many  foreign  vessels  as  well  as  much  foreign-owned  cargo 
are  at  all  times  insured  under  British  policies,  uneasiness  has  of 
late  been  manifested  in  Continental  business  circles  as  to  the 
position  of  foreigners  insured  under  such  policies  in  the  event  of 
Great  Britain  being  at  war.  At  a  meeting  of  the  International 
Maritime  Committee  at  Copenhagen  in  May   1913,  the  subject 

'  The  writer's  Declaration  of  War,  p.  422. 


INSURANCE    OF   ENEMY    PROPERTY         195 

was  specially  raised,  and  the  Chairman  of  Llo)-d's,  who  was 
present,  made  an  important  declaration  respectin^j^  it.  The 
matter  was  thus  reported  in  the   Times  of  22  May  : 


"Insurance  of  Enemy  Property 

"  The  following-  are  the  terms  of  the  statement  respecting  the 
attitude  of  British  underwriters  towards  insurance  contracts  on 
enemy  property  in  time  of  war,  which  was  made  by  Sir  Edward 
Beauchamp,  Chairman  of  Lloyd's,  at  the  International  Maritime 
Conference  at  Copenhagen. 

'  The  British  underwriters  have  naturally  paid  great  attention 
to  this  matter,  and  the  Committee  of  Lloyd's  have  obtained  from 
their  legal  advisers  an  opinion,  of  which  I  will  read  the  material 
parts. 

1.  Upon  the  declaration  of  war  between  Great  Britain  and  a  foreign 
Power  all  contracts  pending  between  British  subjects  and  subjects  of  the 
foreign  Power  become  unenforceable  so  long  as  the  war  lasts. 

2.  Consequently  a  British  underwriter  is  under  no  enforceable  liability 
to  a  subject  of  the  foreign  Power  in  respect  of  a  loss  occurring  during  the 
war  under  a  policy  effected  in  time  of  peace  ;  and,  in  respect  of  a  loss  which 
had  occurred,  before  the  declaration  of  war,  under  such  a  policy,  he  can  claim 
to  have  legal  proceedings  against  him  for  its  recovery  suspended  until  the 
restoration  of  peace. 

3.  But  a  British  underwriter  is  not  forbidden  by  law  to  pay  the  subject 
of  the  foreign  Power  in  time  of  war  for  a  loss  which  has  occurred  either 
during  or  before  the  war,  if  he  thinks  fit  to  do  so  ;  nor  does  he  commit  any 
legal  offence  or  render  himself  liable  to  any  legal  penalty  by  so  doing.  In 
the  case  of  a  loss  sustained  by  a  subject  of  the  foreign  Power  before  declara- 
tion of  war,  it  rests  entirely  with  the  British  underwriter  to  decide  for  himself 
whether  he  will  claim  suspension  of  legal  proceedings  until  restoration  of 
peace  ;  and  if  he  does  not  expressly  claim  this  suspension  in  answer  to  an 
action  brought  against  him,  the  Courts  will  proceed  with  the  trial  of  the 
action  during  and  notwithstanding  the  war. 

'  I  am  advised  that  the  origin  of  the  law  as  enunciated  is  to  be 
found  in  the  strict  decisions  given  in  the  English  Courts  during 
the  Napoleonic  Wars,  and  although  these  questions  have  not 
been  directly  brought  forward  in  recent  years,  it  is  already 
evident  that  the  tendency  of  the  British  Courts  is  against  the 
strict  enforcement  of  the  rules  laid  down  at  a  time  when  the 

13—2 


196         INSURANCE   OF    HNP:MV    PROPERTY 

conditions  of  international  commerce,  including  marine  insurance, 
were  on  a  very  dift'erent  footing  from  those  existing  at  the  present 
time. 

'As  Chairman  of  Lloyd's  I  desire  to  make  the  following 
statements : 

First,  I  am  advised  that  the  records  contain  no  case  in  which  the  British 
underwriters  have  resisted  a  claim  on  a  marine  pohcy  for  a  loss  by  perils  of 
the  sea  on  any  of  the  grounds  referred  to  in  the  opinion  which  I  have  already 
read. 

Secondly,  my  attention  has  been  drawn  to  a  recent  article  in  the  foreign 
Press  in  which  it  is  stated  that  the  English  underwriters  are  not  only  not 
bound  by  law  to  pay  compensation  to  the  subjects  of  enemy  State  for  losses 
which  arise  during  the  war,  even  when  the  policy  was  concluded  before  the 
commencement  of  war,  but  that  the  payment  is  actually  illegal.  This  state- 
ment is  an  inaccurate  reproduction  of  the  answer  of  the  British  Maritime 
Committee  to  the  questionnaire^  and  is  misleading.  It  is  contrary  to  the 
opinion  I  have  already  read,  which  states  unequivocally  that  "a  British 
underwriter  is  not  forbidden  to  pay  the  subject  of  a  foreign  Power  in  time  of 
war  for  a  loss  which  has  occurred  either  during  or  before  the  war,"  and 
moreover,  it  entirely  disregards  the  fact  indicated  in  the  answer  to  the 
questionnaire  that  the  Crown  has  an  inherent  right  to  permit  business  with 
an  alien  enemy.  It  has  been  pointed  out  in  the  interesting  answer  to  the 
questionnaire  prepared  for  the  Dutch  Association  by  Mr  Loder  that  "laws  are 
made  in  vain  if  they  contravene  the  ideas  of  good  faith  and  the  sentiment  of 
whatever  is  honest  and  of  good  report." 

The  position  which  the  English  underwriters  have  assumed  and  which 
they  have  expressed  their  intention  of  continuing  to  hold,  is  that  no  contract 
of  marine  insurance  will  be  repudiated  by  them  on  the  ground  that  it  covers 
enemy  goods,  but  that  all  such  contracts  will  be  faithfully  carried  out  during 
war  as  in  time  of  peace  ;  and  I  may  say  further  for  myself  that  the  position 
taken  up  by  the  English  underwriters  is,  in  my  opinion,  the  only  one 
consistent  with  honesty  and  good  faith.'" 


The  Insurance  of  War  Risks 

In  the  common  or,  indeed,  for  British  purposes,  universal 
form  of  marine  policy  (p.  155)  the  underwriters  "are  contented 
to  bear  and  do  take  upon  "  themselves  a  variety  of  "  adventures 
and  perils",  amongst  which  are  named  the  following  : 

Men-of-war,. ..Enemies,  Pirates,  Rovers... Letters  of  Mart  and  Counter- 
mart, Surprisals,  Takings  at  Sea,  Arrests,  Restraints  and  Detainments  of  all 
Kings,  Princes  and  People,  of  what  Nation,  Condition  or  Quality  soever. 


THE    INSURANCE   OF   WAR   RISKS  197 

In  times  of  settled  peace  these  risks  have  now  (whatever  ma)' 
at  one  time  have  been  the  case)  ceased  to  be  of  any  practical 
concern.  But  who  can  count  on  settled  peace  ?  And,  in  fact, 
at  an  unlooked-for  moment  the  "adventures  and  perils"  defined 
may  become  so  imminent  and  so  grave  that  the  underwriters,  in 
the  absence  of  special  payment,  will  certainly  be  no  longer 
content  to  "  bear  and  take  them  "  upon  themselves.  They  there- 
fore habitually,  in  effect,  wipe  out  these  risks  from  their  accept- 
ance by  an  over-riding  clause,  in  most  cases  printed  in  the  policy 
either  in  italics  or  in  capitals  or  in  red  ink  : 

Warranted  free  from  Capture,  Seizure  and  Detention  and  from  all 
Consequences  of  hostilities  or  Warlike  Operations,  whether  before  or  after 
Declaration  of  War, — 

"  Piracy  excepted  "  being  often  added.  The  clause  varies,  but 
this  is  a  common  form,  and  in  every  case  the  object  and  effect 
are  practically  the  same.  This  clause  is  always  and  very  widely 
known  as  the  "  F.C.  &  S."  or  Free  of  Capture  and  Seizure 
clause.  There  is  probably  no  class  of  risk  mentioned  in  the 
policy  which  has  been  the  subject  of  more  judicial  decisions  than 
the  capture  risk,  and  every  one  of  the  "adventures  and  perils  " 
which  so  abundantly  define  it  in  the  policy  wording  has  been 
discussed,  argued  and  judicially  determined  over  and  over  again. 
And  the  F.C.  &  S.  clause  is  intended  to  over-ride  and  does 
effectually  over-ride  every  one  of  them. 

Now  let  us  deal  with  ship  and  cargo  separately,  and  take  the 
cargo  first. 

Cargo 

Cargo  has  ordinarily  a  short  run.  It  is  the  uncertainties  of 
the  more  or  less  distant  future  which  have  to  be  guarded  against 
in  insurances  covering  war-risks,  and  the  insurance  of  cargo-risks 
is  comparatively  a  matter  of  the  present,  at  any  rate  in  the 
majority  of  cases.  When  the  political  sky  is  serene  and  the 
voyage  is  short,  underwriters,  more  especially  in  the  case  of  their 
old  clients  and  supporters,  may  agree  to  "throw  in"  the  risks  of 
war  for  no  additional  premium.  The  process  is  very  simple. 
The  superadded  F.C.  &  S.  clause  is  struck  out  from  the  policy, 
a  line  being  ruled  or  drawn  through  it  and  the  deletion  initialled 


198  THK    INSURANCE    OF   WAR   RISKS 

by  the  underwriter.  Then  at  once  comes  back  into  full  force  all 
the  capture  or  war  risk  wording  which  the  F.C.  &  S.  clause 
over-rode  :  the  cargo  is,  as  originally  declared,  insured  against 
all  the  enumerated  risks  of  hostilities.  Amongst  the  insurance 
companies,  the  position  is  always  open  to  be  raised  at  a  meeting 
of  the  Institute  of  London  Underwriters  (p.  133).  At  such 
a  meeting  it  may  be  decided  till  further  notice  either  to  cover 
cargo  war  risks  on  certain  voyages  free  of  extra  charge  ;  to  insist 
on  a  small  additional  premium — is.  ^d.  or  is.  6d.  per  cent,  for 
example — in  the  case  of  other  voyages  ;  or  to  require  a  higher 
premium  in  the  case  of  others.  The  merchant  has  his  ordinary 
premium  enhanced  to  such  extent,  and  the  F.C.  &  S.  clause  is 
on  his  request  or  agreement  struck  out  accordingly.  Generally 
speaking,  the  action  of  the  majority  of  Lloyd's  underwriters 
and  of  the  insurance  companies  at  large  will  in  such  cases  be 
on  corresponding  lines.  The  companies  will  know  in  advance 
from  conversations  with  leading  Lloyd's  underwriters  the  view 
likely  to  be  taken  in  "The  Room",  and  will  no  doubt  "govern 
themselves  accordingly  ",  though  their  action  may  of  course  be 
independent. 

As  a  broad  general  rule  it  may  be  assumed  that  in  most,  if 
not,  perhaps,  in  all  cases,  cargo  is  systematically  insured  against 
war-risks,  either,  in  some  or  many  cases  (according  to  the  political 
outlook)  w'ithout  extra  charge,  or  by  payment  of  an  additional 
premium.  For  one  thing,  advances  are  largely  made  again.st 
collateral  securities,  i.e.  bills  of  lading  and  the  insurance  policy 
(p.  179);  and  the  lenders  or  advancers,  if  it  occurs  to  them  to 
look  into  the  point,  will  require  a  policy  which  will  protect  them 
in  the  possible  event  of  sudden  hostilities.  On  the  other  hand, 
there  may  be  merchants  who  will  scoff  at  the  risk  of  war,  in  the 
case  of  their  particular  shipment,  and  decide  to  run  the  risk 
themselves  rather  than  pay  money  to  have  the  F.C.  &  S.  clause 
struck  out.  But  then,  again,  if  war  did  occur  or  the  threat  of  it, 
probably  many  merchants  not  covered  against  war-risks  by  the 
terms  of  their  policy  would  either  pay  specially  to  have  the 
F.C.  &  S.  clause  cancelled  or  would  take  out  at  Lloyd's  or  else- 
where a  policy  specially  and  solely  to  cover  the  risks  excluded 
by  the  F.C.  &  S.  clause  in  their  marine-risks  policy.     It  may 


THE    INSURANCE   OF   WAR    RISKS  199 

easily  happen,  on  occasion,  that  the  marine-risks  and  the  war-risks 
will  be  separately  covered  on  such  basis.  Let  it  be  repeated, 
then,  that,  broadly  stated,  if  war  should  at  any  time  break  out, 
cargo  will  generally  be  covered  against  hostile  risks,  though  no 
doubt  with  exceptions. 

In  the  Balkan  crisis  of  tlie  spring  of  191 3  great  uncertainty 
prevailed  as  to  the  international  outcome,  and  the  insurance  of 
cargo  against  war-risks  became  a  widely  recognised  necessity. 
The  following  summary  of  the  situation,  published  in  the  Times, 
will  serve  as  a  useful  illustration  of  the  foregoing  remarks 
generally : 

MERCHANTS   AND    THE    RISKS    OF   WAR. 
KEEN   DEMAND   FOR   INSURANCE   ON   SHIPMENTS. 

While  for  the  moment,  at  any  rate,  there  was  a  comparative  lull  yesterday 
in  the  demand  for  insurance  in  connexion  with  the  Balkan  War,  marine 
insurance  companies  report  that  the  quantity  of  cargo  being  covered  for 
months  ahead  against  the  risks  of  war  is  now  very  great.  The  offices  can 
recall  no  previous  occasion  on  which  the  demand  has  been  so  keen,  and  the 
commitments  of  the  London  market  are  already  immense. 

What  exactly  is  occurring  is  that  many  merchants,  considering  the  possi- 
bility of  foreign  political  complications  and  an  insistence  on  the  part  of  the 
banks  financing  the  shipments  that  the  goods  should  be  covered  against  war 
risks,  are  now  taking  advantage  of  the  present  low  rates.  While  the  risk  is 
small,  premiums  are  small,  but  directly  there  is  any  real  alarm  the  rates 
invariably  rise  rapidly. 

At  present  the  whole  of  the  cotton  shipments  of  certain  merchants  from 
the  United  States  to  Liverpool  and  Northern  Europe  until  the  end  of  the 
season — i.e.,  about  April — are  being  covered  against  war  risks  at  \s.  6d.  or 
2S.  per  cent.  These  rates  are  the  lowest  quoted  for  any  homeward  cargo, 
partly  because  the  risk  of  the  capture  of  vessels  crossing  the  Atlantic  is 
considered  far  less  than  that  of  vessels  traversing  the  Mediterranean,  and 
also  because  the  proportion  of  British  vessels  on  this  route  is  greater  than 
that  in  any  other  trade. 

Produce  from  the  East. 

Shipments  of  wheat  from  Australia  until  the  close  of  the  present  season 
at  the  end  of  March  are  being  accepted  at  2s.  bd.  per  cent.,  and  consignments 
of  cotton  and  grain  from  India  during  the  next  three  months  at  the  same 
rate.  General  cargo  from  Japan,  such  as  silks  and  tea ;  frozen  salmon  from 
the  Siberian  Rivers;  and  tobacco  and  sugar  from  the  East  Indies  is  being 
accepted  for  three  months  at  2.c.  6d.  per  cent.  Three  months  is  the  most 
common  period  for  which  general  cargo  is  covered,  since  underwriters  as 
a  rule  prefer  not  to  look  further  ahead. 

Nitrate  in  ships  from  the  West  Coast  of  South  America  was  yesterday 


20O  THE    INSURANCE   OF   WAR    RISKS 

being  written  at  ^s.  per  cent.,  whereas  only  a  few  days  ago  it  was  accepted 
at  2 J.  M.  per  cent. 

Outward  cargo  from  this  country,  such  as  Manchester  goods,  is  being 
accepted  at  as  low  a  rate  as  i^-.  3^/.  per  cent.,  for  it  is  reasoned  that  in  the 
event  of  a  war  in  Northern  Kurope  exports  are  likely  to  be  out  of  the  danger 
zone  much  sooner  than  imports. 

S/li/> 

The  ship  stands  on  a  different  footing  altogether.  A  vessel 
ma)-  on  occasion  be  insured  for  a  special  voyac^e,  either  "  out ", 
or  "home",  or  "out  and  home",  and  in  such  event  the  position 
as  regards  war-risks  will  be  much  on  the  lines  already  indicated 
in  the  case  of  cargo.  But  the  great  bulk  of  our  steamship 
tonnage  is  insured,  as  it  is  expressed,  "  for  time."  And  while 
the  period  may  in  cases  be  six  months,  as  a  broad  general  rule 
the  period  covered  is  twelve  months — not  longer,  because  the 
Stamp  Act  fixes  twelve  months  as  the  maximum.  And  who 
can  say  that  for  so  long  a  period  the  political  relations  will 
remain  unchanged?  No  one:  and  underwriters  at  any  rate  are 
not  going  to  run  the  risk.  Therefore — though  there  may  of 
course  be  occasional  exceptions — it  may  safely  be  accepted  that, 
except  as  to  be  presently  explained,  the  vast  bulk  of  our  steamers 
remain  at  the  risk  of  the  owners  as  regards  the  consequences  of 
hostilities.  If  the  outlook  were  to  become  black,  probably  some 
owners,  possibly  a  good  many,  would  endeavour  to  take  out 
special  insurance  to  cover  war-risks  on  their  vessels  then  afloat 
until  conclusion  of  the  particular  voyage  ;  but  this  would  depend 
a  good  deal  on  the  premium  quoted  by  the  underwriters,  already, 
perhaps,  heavily  committed  on  cargo  risks.  The  owners  might 
decide,  in  preference,  to  detain  their  ships  in  port  of  loading,  of 
call,  or  of  coaling,  and  to  "  wait  and  see."  Some  of  our  well- 
known  lines,  as  is  common  knowledge,  have  their  own  domestic 
or  internal  insurance  fund,  and  do  not  insure  outside  at  all.  Still, 
their  fund  may  not  contemplate  war-risks,  and  the  self-insuring 
lines  might  perhaps  take  the  same  view  as  regards  war-risks  as 
do  the  owners  of  the  vessels  which  are  already  insured  against 
sea-risks  only. 

We  may  take  it  then,  broadl)',  that  neither  with  the  insurance 
companies  nor  at  Lloyd's  are  the  bulk  of  our  vessels  covered 
against  war-risks. 


THE    INSURANCE   OF   WAR    RISKS  201 

There  is,  however,  another  method  of  insuring,  namely,  by- 
means  of  the  Shipowners'  Insurance  Associations  or  Mutual  Clubs. 
Some  vessels  as  elsewhere  explained  (p.  99)  are  entirely  insured 
in  the  Clubs,  while  many  of  them  are  covered  by  the  Clubs 
against  liabilities  not  coming  within  the  technical  definition  of 
perils  of  the  sea,  perils  which  consequently  are  not  covered  under 
marine  insurance  policies. 

As  regards  insurance  by  the  Clubs,  in  January  191 3  the 
North  of  England  Protection  and  Indemnity  Association  issued 
a  special  circular  relative  to  its  "  Class  III  "  or  war-risks  division. 
This  circular  so  well  illustrates  the  situation  in  respect  of  the 
Club  insurances  that  it  may  be  set  forth  in  extenso : 

With  regard  to  the  circulars  issued  by  a  number  of  London  associations, 
proposing  to  form  additional  classes  for  covering  war  risks  (as  this  association 
has  done  since  1898),  my  directors  desire  me  to  again  take  this  opportunity 
of  placing  before  shipowners  the  substantial  benefits  and  security  provided 
by  Class  III.  (war  risks)  of  this  association,  viz.  : — 

1.  Members  of  Class  III.  of  our  association  are  covered  against  not  only 
the  risks  excluded  from  policies  upon  hull,  &c.,  by  the  usual  F.C.  &  S. 
clause  of  the  Institute  of  London  Underwriters,  but  also  against  the  same 
risks  excluded  by  other  similar,  though  not  more  extensive,  warranty. 

2.  War  risks  are  covered  in  a  separate  class  of  this  association,  which 
already  has  more  than  1000  steamers  and  a  capital  of  about  28,500,000/., 
and  which  is  rapidly  being  increased.  Members  of  this  class  are  as  free  in 
relation  to  their  protection  and  indemnity  risks  arranged  elsewhere  as  though 
they  were  in  a  different  association. 

3.  The  directors  of  this  association  have  now  had  14  years'  active  experi- 
ence of  the  manifold  difficulties  arising  to  shipping  through  conditions  of 
war  and  /  or  panic,  revolution,  &c.,  and  of  the  most  efficient  means  of  dealing 
with  all  of  these  difficulties  to  the  best  advantage  of  the  members. 

4.  The  only  charges  the  members  of  this  class  of  the  association  have 
been  called  upon  to  pay,  since  its  formation  in  1898,  are  those  for  entrance 
fee  and  annual  contribution. 

5.  The  entrance  fee  is  of  course  only  paid  once — on  entry — and  it  is 
important  to  note  that  its  payment  entitles  newly-entered  members  to  the 
right  to  benefit  by  the  reserve  funds  which  have  been  steadily  accumulating 
for  years  before  they  joined.  Out  of  this  reserve,  claims  have  been  paid  in 
the  past  without  there  having  been  need  to  call  upon  the  members  in  respect 
of  same. 

6.  Members  of  this  class  who  have  watched  the  progress  of  events  and 
the  rates  current  at  Lloyd's,  &c.,  for  insurance  against  war  risks  during  the 
progress  of  the  American-Spanish,  Russo-Japanese,  Turkish-Italian  and 
Balkan  wars  alone,  will  be  able  to  fully  appreciate  the  enormous  saving  of 


202  THE    INSURAN'CE   OF    WAR    RISKS 

expense  their  continuous  membership  of  our  war  risks  class  has  effected  for 
them.     Of  this  fart  we  frequently  receive  appreciative  testimony. 

Many  illustrations  of  this  can  be  jjivcn,  but  one  will  probably  suffice  to 
show  how  j,'reat  that  saving;  of  expense  to  members  has  been  in  one  detail 
alone.  The  instance  of  the  Dardanelles,  the  Sea  of  .Marmora,  and  nearly 
all  the  ports  and  waterways  in  Turkey  in  Europe  and  Asia,  being  mined, 
and  in  the  case  of  the  Dardanelles  heavily  mined!  The  directors  have  so 
far  not  placed  the  slightest  "bar"  against  our  members  legitimately  trading 
to,  and /or  through,  any  of  those  districts;  and  yet  the  rate  charged  to 
uninsured  owners  by  underwriters  to  cover  the  same  risks  for  a  voyage  has 
been  anything  over  25.f.  per  cent.  It  has  cost  our  members  id.  percent,  per 
annuni  to  cover  that  and  all  other  war  risks. 

7.  Security.  —  It  probably  needs  no  argument  on  our  part  to  demonstrate 
the  fact  that  the  security  afforded  by  a  capital  of  nearly  28,500,000/.  is  vastly 
greater  than  that  which  can  be  provided  by  individual  underwriters. 

At  our  annual  meeting,  to  be  held  on  the  28th  inst.,  it  will  be  proposed 
that  the  limit  of  cover  of  50,000/.  on  any  one  vessel  be  increased  to  75,000/., 
having  regard  to  the  increased  size  and  values  of  steamers. 

The  proposal  other  associations  make  as  to  "pooling"  the  losses  of 
several  associations  merely  seems  to  be  an  effective  argument  for  having 
one  association,  with  a  large  capital,  such  as  ours,  with  one  expense  of 
management— not,  as  would  appear  to  be  mtimated,  one  association,  in 
effect,  with  several  sets  of  management  expenses. 

It  will  be  noticed  that  the  above  circular  begins  with  a 
reference  to  what  may  be  regarded  as  rival  circulars  by  London 
and  other  associations.  These  important  associations  consisted 
of  the  Britannia  Steamship  Insurance  Association,  the  London 
Steamship  Owners'  Mutual  Insurance  Association,  the  Neptune 
Association,  the  Newca.stle  Protecting  and  Indemnity  Associa- 
tion, the  Standard  Steamship  Owners'  Protection  and  Indemnity 
Association,  the  Sunderland  Protecting  and  Indemnity  Associa- 
tion, and  the  West  of  Plngland  Steamship  Owners'  Protection 
and  Indemnity  Association.  Thq  Times,  in  its  comments  on 
the  proposed  new  scheme,  having  remarked  that  "  the  object  of 
the  scheme  is  rather  to  cover  shipowners  against  the  risk  of  a 
war  between  foreign  nations  than  of  one  directly  involving  this 
country  ",  the  proposers  replied  by  pointing  out  "  that  one  of  the 
most  important  objects  of  the  scheme,  and  perhaps  the  one  con- 
sidered of  the  greatest  value  by  a  large  body  of  shipowners,  is 
that  it  provides  an  insurance  against  a  sudden  outbreak  of  war 
in  which  this  country  is  engaged,  and  will  cover  vessels  in  such 
an  eventuality  until  they  are  brought  into  a  place  of  safety." 


THE    INSURANXE   OF   WAR   RISKS  203 

The  Times  could  not  accept  the  correction,  on  the  grounds 
of  the  following  clause  of  the  proposed  contract,  viz.  :  "  The 
assured  warrants  that  the  entered  ship  shall  not  during  the  term 
of  any  naval  warfare  in  which  this  country  may  be  a  belligerent 
sail  from  any  safe  port  or  place  in  which  the  vessel  may  be  when 
war  breaks  out  or  is  declared  or  which  she  may  enter  after  such 
outbreak  or  declaration";  and  the  article  continued  as  follows: 
"The  insurance  would  no  doubt  be  of  much  value  as  covering 
vessels  until  they  were  brought  into  a  place  of  safety,  but  it 
would  in  no  way  enable  them  to  carry  on  their  trade  during  a 
war  involving  this  country.  Its  scope,  therefore,  in  the  event  of 
such  an  outbreak,  would  seem  to  be  extremely  limited.  On  the 
other  hand,  the  remaining  clauses  of  the  contract  show  that  the 
owners  of  vessels  would  be  indemnified,  under  certain  conditions, 
even  if  they  continued  to  carry  on  their  trade  with  foreign  nations 
involved  in  war. 

"It  would  seem  desirable  to  make  quite  clear  the  fact  that  the 
proposed  scheme  of  insurance  is  only  intended  to  cover  the  risks 
of  war.  That  is  to  say,  it  will  only  cover  loss  of,  or  damage 
sustained  by,  a  ship  which  is  or  would  be  excluded  from  policies 
insuring  hull  and  machinery  by  the  following  clause: 

"  Warranted  free  from  capture,  seizure,  and  detention,  the 
consequences  thereof,  or  any  attempt  thereat,  piracy  excepted, 
and  also  from  all  consequences  of  hostilities  or  warlike  operations, 
whether  before  or  after  declaration  of  war. 

"The  war  insurance,  however,  is  not  to  be  subject  to  the  3  per 
cent,  franchise  in  the  ordinary  policies." 

The  scheme  is  certainly  important ;  but  when  all  is  said 
and  done,  what  it  chiefly  aims  at,  in  the  event  of  our  being 
suddenly  involved  in  war,  is  this  :  insured  vessels  are  to  be 
held  covered  so  long  as  they  remain  in  any  port  in  which  they 
may  be  lying  safe  when  war  breaks  out  ;  or,  if  they  are 
at  sea,  to  cover  them  into  a  safe  port  and  whilst  there.  If, 
however,  being  already  in  safety  or  having  attained  safety,  they 
voluntarily  put  to  sea,  then,  apparently,  the  insurance  will  cease 
to  cover  them. 

The  January  proposals   resulted   in   the  constitution    of  a 


204  TIIK    INSURANCE   OF   WAR    RISKS 

Liverpool  and  London  Steamship  Protection  Association.  The 
foUouinrr  is  from  the  Times  of  22  May,  191 3  : 

"Sir  Norman  Hill,  wlio  is  the  first  manager  and  secretary 
of  the  association,  has  issued  the  followin<^  letter  to  shipping; 
firms  in  Ikitish  ports  setting  forth  the  lines  upon  which  it  will 
be  worked  : 

Dear  Sirs, 

The  proposals  for  the  formation  of  a  mutual  association  for  the 
insurance  of  shipowners  against  war  risks  submitted  by  the  Liverpool  and 
London  Steamship  Protection  Association  (Limited)  in  January  last  having 
met  with  general  approval,  it  has  been  determined  to  proceed  with  the  forma- 
tion of  the  new  association  referred  to  in  those  proposals.  The  new  association 
will  be  registered  with  limited  liability  under  the  name  of  the  LIVERPOOL 
AND  London  War  Risks  Insurance  Association  (Limited),  and  it  will 
be  worked  on  the  following  lines  : 

(i)     It  will  be  open  to  all  British  ships  accepted  by  the  committee. 

(2)  For  the  purposes  of  insurance  and  contribution  all  vessels  will  be 
valued  at  their  first  cost,  less  depreciation  at  the  rate  of  5  per  cent,  per 
annum  on  such  first  cost,  but  with  a  minimum  value  of  £1  per  ton  gross 
register. 

(3)  The  risks  covered  will  be  specified  in  the  policy  issued  by  the 
association.  They  are  the  risks  set  forth  in  the  proposals,  and,  in  addition, 
the  risk  of  arrest  and  restraint  of  princes,  &c.,  even  although  not  war  risks. 

(4)  A  neutral  port  will,  for  the  purpose  of  terminating  the  risk,  be 
defined  as  {(i)  a  safe  port  for  the  ship  to  lie  in,  and  {l))  a  port  which  remains 
neutral  for  ten  days  after  the  vessel's  arrival  therein. 

(5)  The  cost  of  the  formation  of  the  association  will  be  provided  by 
means  of  an  entrance  fee  calculated  at  the  rate  oild.  per  ^loo  of  the  values 
insured. 

(6)  The  cost  of  the  management  of  the  association  will  be  provided  by 
means  of  an  annual  subscription  at  the  rate  of  2d.  per  ^100  of  the  values 
insured. 

(7)  The  association  will  be  under  the  management  of  a  committee,  and 
the  first  committee  will  consist  of  Messrs  A.  A.  Booth,  T.  F.  Harrison, 
Joseph  Hoult,  Lord  Inchcape,  Messrs  J.  Bruce  Ismay,  George  H.  Melly, 
Sir  Owen  Philipps,  and  Messrs  Thos.  Rome  and  Harold  A.  Sanderson. 

(8)  The  first  manager  and  secretary  of  the  association  will  be  Sir 
Norman  Hill. 

(9)  The  offices  of  the  association  will  be  at  10,  Water-street,  Liverpool.... 
The  owners  whose  names  are  given  below   and   whose   fleets    include 

433  vessels  of  the  aggregate  value  of  ^29,000,000  have  already  intimated 
their  intention  to  become  members  of  the  association.  If  it  is  your  desire  to 
insure  your  vessels  with  the  association  I  shall  be  obliged  by  your  completing 
and  returning  to  me  the  enclosed  application  for  membership  form. — Yours 
faithfully,  Norman  Hill,  Manager  and  Secretary. 


SHIPPING   AND    HOSTILITIES  205 

The  list  of  owners  who  have  already  intimated  their  intention  of 
becoming  members  of  the  association  are  the  American  Line  (British 
vessels),  the  Anchor  Line,  the  Brocklebank  Line,  Bibby  Brothers  and  Co., 
the  British  India,  the  Cunard  Line,  the  Dominion  Line,  Elder  Dempster 
and  Co.,  T.  and  J.  Harrison,  Joseph  Hoult,  Lamport  and  Holt,  F.  Leyland 
and  Co.,  the  Pacific  Steam  Navigation. Company,  Rankin,  Gilmour,  and  Co., 
the  Royal  Mail  Steam  Packet  Company,  and  the  White  Star  Line. 

In  order  to  remove  any  possible  misapprehension  as  to  the 
objects  it  should  be  stated  that  the  association  is  not  proposing 
to  cover  the  risks  of  the  British  shipowner  should  Great  Britain 
happen  to  be  at  war.  The  object,  as  explained  by  Sir  Norman 
Hill,  is  to  cover  the  risks  of  the  British  shipowner  while  Great 
Britain  is  neutral  and,  in  addition,  in  the  event  of  this  country 
being  at  war  to  cover  the  British  shipowner  until  his  vessel  is 
either  in  a  safe  neutral  port  or  a  home  port.  The  insurance 
then  stops  in  the  event  of  Great  Britain  being  at  war.  The 
British  shipowner  will  be  covered  while  Great  Britain  is  neutral. 
Further  it  is  provided  that  members  must  not  be  guilty  of  any 
breach  of  neutrality." 

Shipping  and  Hostilities 
The  question  is  often  asked,  "  If  we  were  at  war,  what  would 
be  the  effect  on  British  shipping?"  The  enquiry  is  too  com- 
prehensive to  be  answered  off-hand  or  in  a  few  words— if,  indeed, 
it  can  be  properly  answered  at  all.  It  is  a  full  century  since  our 
ocean  commerce  has  been  exposed  to  hostile  activities,  and  in 
this  century  the  changes  have  been  great,  changes  both  on  the 
warlike  and  on  the  trading  side.  On  the  warlike  side,  notably, 
the  evolution  of  the  ship  of  war  on  lines  which  place  the  largest 
merchantman,  unless  of  greater  speed,  completely  at  the  mercy  of 
the  armed  vessel,  irrespective  of  her  size  or  complement.  Then, 
the  introduction  of  the  floating  mine,  by  which,  or  by  the  fear  of 
which,  ports  of  destination  or  of  sailing  may  suddenly  be  closed. 
On  the  trading  side,  the  far-reaching  substitution  of  steam  for 
sail,  with  its  consequent  breaking-up  of  merchant  voyages  into 
stages,  and  rendering  of  trading  vessels  absolutely  dependent  on 
their  fuel  supplies.  Again,  telegraphic  and  postal  facilities  and 
trade  or  speculative  developments,  which  have  brought  about 
a  wholesale  system  of  sales  and  re-sales  of  cargoes  on  the  high 


2o6  SHIPIMXG   AND    HOSTILITIES 

seas,  with  the  result  that  ships  carrying,  more  especially,  grain 
cargoes  sail  for  a  destination  not  to  be  determined  until  the 
ship's  arrival  at  some  port  of  call.  In  the  old  days  war  might 
have  been  waging  for  weeks  or  even  months  before  news  of  it 
reached  distant  ports,  and  peaceful  ships  might  sail  in  ignorance 
straight  into  the  lion's  moutli.  In  those  days,  too,  at  any  rate 
in  time  of  war,  on  beaten  tracks,  ships  sailed  in  fleets  and  under 
convoy,  those  sailing  singl)-  being  the  prey — unless,  as  sometimes 
happened,  they  could  hold  their  own — of  privateer  or  prize- 
seeking  cruiser.  Then,  formerl)',  privateers  swarmed  upon  the 
seas.  It  is  stated  that  when  in  1781  war  broke  out  with  Holland, 
within  13  days  of  the  outbreak  545  letters  of  marque  had  passed 
the  Stamp  Office. 

And  though,  by  reason  of  her  neutral  flag,  the  ship  herself 
might  be  exempt,  her  cargo,  if  of  enemy  ownership,  might  then 
be  lawful  prize.  But,  Declaration  of  Paris  or  not,  privateering 
is  dead.  It  existed  essentially  as  a  sordid  speculation  ;  and  the 
evolution  of  the  ship  of  war,  coaling  difficulties,  and  the 
neutrality  laws  have,  it  may  be  presumed,  conjointly  wiped 
privateering  off  the  slate.  Fast  vessels,  crammed  with  coal,  may 
no  doubt  put  to  sea  as  commerce-destroyers  ;  but  whereas  the 
privateers,  a  venomous  brood  of  prize-seekers,  swarmed  upon  the 
seas,  indifferent  to  considerations  of  naval  predominance,  com- 
merce-destroyers, however  swift,  seem  likel}'  to  be  comparatively 
few.  And  though  they  may,  at  the  outset,  effect  much  injury,  they 
seem  unlikely  to  continue,  like  the  privateers,  an  incident  of  pro- 
longed hostilities.  The  changes  are  many  and  great  indeed  :  but 
perhaps  the  most  fundamental  of  them  all  is  that  effected  by  the 
submarine  cable.  For  whereas,  formerly,  a  vessel  might  sail  from 
a  distant  port  in  ignorance  that  hostilities  had  broken  out,  perhaps 
weeks  or  months  beforehand,  now  and  in  the  future  the  knowledge 
of  war  will  be  flashed  to  every  port  in  the  world — loading  port, 
coaling  port,  port  of  call — the  instant  hostilities  occur.  Wireless 
telegraphy  will  send  the  news  from  port  to  ship,  from  ship  to 
ship  ;  it  will  be  signalled  at  sea  by  flag  and  flash-lamp.  The 
great  fact  of  this  universality  of  information  introduces  a  new 
condition.  It  is  almost  as  though  the  outbreak  of  war  will  be 
announced  by  a  warning  gun  of  which  the  terrific  report  will 


SHIPPING   AND    HOSTILITIES  207 

reverberate  round  the  world.  The  first  thought  and  aim  of  every 
vessel  will  then  be  safety — safety  and  her  owners'  instructions. 
The  world's  commerce  will  be  instantaneously  held  up,  wherever 
to  take  or  keep  the  sea  will  involve  the  risk  of  capture  or  destruc- 
tion. There  may,  of  course,  in  the  case  of  certain  voyages,  be 
the  granting  of  exceptions  or  immunities  and  "days  of  grace" 
(p.  187) — Article  I  of  the  Hague  Peace  Conference,  1907, 
declares,  indeed,  that  •'  it  is  desirable "  that  such  allowances 
should  be  granted — but  these,  if  any,  are  likely  to  come  later. 
A  captain  will  voluntarily  take  no  risks  without  cabling  to  his 
owners  for  instructions. 

Article  III  of  the  same  Conference  provides  that 

"Enemy  merchant-ships  which  left  their  last  port  of 
departure  before  the  commencement  of  the  war,  and  are 
encountered  on  the  high  seas  while  still  ignorant  of  the  out- 
break of  hostilities,  cannot  be  confiscated.  They  are  only 
liable  to  detention  on  the  understanding  that  they  shall  be 
restored  after  the  war  without  compensation,  or  to  be  requi- 
sitioned, or  even  destroyed,  on  payment  of  compensation,  but 
in  such  cases  provision  must  be  made  for  the  safety  of  the 
persons  on  board  as  well  as  the  security  of  the  ship's  papers. 
After  touching  at  a  port  in  their  own  country  or  at 
a  neutral  port,  these  ships  are  subject  to  the  laws  and 
customs  of  maritime  war." 

But  in  any  event,  a  ship  which  learns  at  sea  that  war  has 
broken  out  will  not  be  greatly  influenced  by  the  fact  that  if  she 
is  captured  or  destroyed  the  owners  of  the  property  will  have 
some  day  to  be  compensated  :  i.e.  if  they  can  prove  their  case, 
and  if  Article  III  should  in  fact  be  acted  on.  The  ship  will  not 
want  to  be  captured  or  destroyed,  on  any  mitigating  conditions 
whatever,  and  will  do  her  utmost  to  get  quickly  into  the  nearest 
safe  port  from  which  to  cable  to  her  owners.  Dr  Pearce  Higgins 
in  his  Hague  Peace  Conference  (1909),  p.  304,  explains  that 
Germany  and  Russia  do  not  accept  this  Article  of  the  Convention, 
and  that  consequently  as  regards  these  two  states  between  them- 
selves, or  between  either  of  them  and  ourselves,  the  Article  is 
apparently  inapplicable. 


2o8       THE  POSITION    OF   THE   SHIPOWNERS 

TiiK  Position  of  tiik  Sum'owners 

It  is  sometimes  said  that  we  may  rely,  so  far  at  any  rate  as 
concerns  our  own  supplies,  on  the  patriotism  of  the  shipowners. 
Shipowners  are  no  doubt  as  patriotic  as  most  of  us,  and  indeed, 
with  their  special  knowledge  of  imperial  responsibilities  and 
needs,  more  patriotic  than  a  good  many.  But  what,  primarily 
and  after  all,  is  the  shipowner  ?  A  shipowner  is  largely  one  who 
accepts  or  is  charged  with  the  responsibility  of  other  people's 
property.  Certainly  this  is  so  as  regards  the  cargo;  and  perhaps, 
in  round  figures,  the  value  of  the  average  cargo  may  be  taken  as 
50  per  cent,  above,  or  possibly  double,  that  of  the  average  trading 
vessel  carrying  it.  The  cargo  people  know  that  the  shipowner 
is  a  practical  business  man,  guided  in  his  business  by  business 
considerations  ;  and  they  rely  on  him  accordingly.  As  to  the 
ship,  as  distinguished  from  the  cargo,  she  may  belong  solely  to 
the  ostensible  owner,  but  more  probably  his  relatives  and  friends 
will  be  also  concerned  in  her  ;  or  there  may  be  many  part-owners 
or  scores  of  shareholders  whose  property  is  at  stake  in  her.  So 
that,  with  the  ship  as  with  the  cargo,  the  owner  will  be  more  or 
less  a  trustee  for  other  people.  Patriotism  is  but  sentiment, 
however  lofty;  and  though  his  patriotism  may  inspire  a  ship- 
owner, as  it  will  inspire  others,  to  the  utmost  personal  sacrifice, 
business  is  business,  and  in  dealing  with  business  matters 
business  principles  will  be  his  guide.     And  rightly  so. 

Shipping  generally 

In  discussing,  above,  the  position  of  shipping  in  the  event  of 
war,  we  have  been  discussing  indiscriminately  two  aspects  of  the 
case  which  are  in  fact  distinct.  The  effect  on  our  shipping 
engaged  in  earning  or  seeking  freights  or  in  fulfilling  contracts 
at  the  moment  when  war  breaks  out,  and  the  effect  on  our 
shipping  generally  during  the  later  and  possibly  protracted 
progress  of  hostilities,  are  separate  propositions.  Let  us  deal 
with  them  accordingly. 


WHEN    WAR    BREAKS   OUT  209 

When  War  breaks  out 

In  the  absence,  in  the  modern  conditions,  of  experience  to 
guide  us,  all  we  can  deal  with  is  the  probabilities.  Every  captain 
and  ship's  agent  knows  that  the  ship's  charter  or  bills  of  lading 
make  or  imply  special  provisions,  rights  or  reservations  as  regards 
the  possibility  of  war  (cf  pp.  80,  85),  and  that  if  or  when  war  breaks 
out,  the  owners,  and  not  the  captain  or  agent,  will  in  practice  decide 
as  to  the  course  to  be  adopted.  We  may  safely  assume,  then, 
rather  as  a  certainty  than  a  probability,  that  no  home-coming  ship 
which  is  safe  in  port,  whether  of  loading,  call  or  refuge,  will  move 
from  where  she  is  without  instructions  cabled  from  the  owners. 
It  is  also  reasonable  to  suppose  that  the  captain  of  any  home- 
ward bound  vessel  learning  the  news  at  sea,  at  a  distance  from 
his  destination  and  within  reach  of  some  safe  port,  will,  if  to 
continue  his  voyage  or  to  deviate  to  a  probably  protected  "  lane  " 
seem  perilous,  make  for  the  safe  port  and  cable  his  arrival  there. 
What  course  will  the  owners  adopt  in  such  conjunction  ?  All 
is  confusion,  Lloyd's  humming  like  a  hive  of  bees  disturbed, 
the  Baltic  in  a  wild  turmoil,  cargo-owners  and  underwriters 
interviewing,  telephoning  and  writing  to  the  owners.  Reports 
of  commerce-destroyers,  true  or  imaginary,  rumours  of  mines, 
alarming  cablegrams  in  the  press  :  what  course  will  the  owners 
adopt  .■*  Almost  inevitably  they  will  decide  to  stand  by  and  see 
what  happens.  The  ship's  captain  and  agents  will  be  peremp- 
torily instructed  by  cable  that  the  vessel  is  to  remain  where  she 
is  (or  possibly,  if  this  be  safe,  to  proceed  to  the  next  port  on  her 
route,  and  there  remain)  till  receipt  of  further  instructions.  What 
these  instructions  will  be  and  when  they  will  be  sent  will  depend 
on  many  things,  to  be  considered  presently.  Meantime  it  may 
be  remarked  that  vessels  carrying  cargoes  to  a  port  which  has 
suddenly  become  that  of  their  country's  enemy  will  be  in  a 
position  of  special  difficulty.  To  continue  their  voyage  will 
entail  the  heinous  offence  of  trading  with  the  enemy,  a  breach 
of  the  law  involving  the  risk  of  British  capture  and  condemna- 
tion. The  enemy  may  or  may  not  declare  a  special  immunity 
to  vessels  of  hostile  ownership  so  engaged,  but  should  he  do  so  it 
will  remain  with  our  own  Government  to  assent  to  such  immunity 

o.  14 


2IO  WHEN    WAR   BREAKS    OUT 

or,  conversely,  to  repudiate  it :  to  disallow  all  trading  with  the 
enemy.  So  far  as  cargoes  of  food-stuffs  are  concerned  it  seems 
improbable  that  the  Government  will  assent  to  these  being  carried 
possibly  past  our  doors  for  delivery  to  the  enemy  and  thus  sanc- 
tion a  trading  with  the  enemy  in  supplies  which  we  ourselves 
shall  need.  Possibly,  indeed,  if  our  need  be  great,  home-coming 
British  vessels  carrying  food-stuffs  even  to  neutral  ports  may 
be  ordered  to  abandon  such  voyage  and  terminate  it  at  a  United 
Kingdom  port. 

We  have  been  considering  above  the  case  of  British  vessels 
loading  or  carrying  cargoes  homewards.  How  as  regards  ships 
which  have  sailed  or  are  loading  outwards  ?  Those  which  have 
already  sailed  for  distant  destinations  will  presumably  increase 
their  chance  of  safety  as  they  increase  their  distance  from  the 
special  area  of  hostilities  ;  but  probably  they  also  will  cable  home, 
at  the  earliest  opportunity,  for  instructions,  and  will  await  them 
at  port  of  call  or  refuge.  Ships  loading  in  our  home  ports  or 
which,  having  loaded,  have  not  yet  put  to  sea,  will  be,  like  home- 
coming ships,  held  up.  And  here  we  get  to  the  considerations 
which  will  determine  whether  ships  which  happen  to  be  in  port, 
or  which  have  succeeded  in  getting  into  port,  other  than  their 
port  of  destination,  shall  be  detained  there  or  ordered  to  proceed. 
Let  us  take  first  the  case  of  the  ship,  per  se,  whether  home- 
ward or  outward  bound,  (i)  She  may  not  be  insured  against 
war  risks  at  all ;  (2)  she  may  be  insured  against  war  risks  in  a 
mutual  club  or  association  only  so  far  as  a  port  of  safety  and 
whilst  remaining  there  ;  or  (3)  she  may  be  covered  against  war 
risks  under  an  ordinary  policy  or  in  a  club  until  completion  of  her 
voyage.  In  the  first  two  cases  if  she  should  proceed,  then,  if 
captured,  her  loss  clearly  would  fall  upon  her  owners.  Unless 
and  until  special  insurance  had  been  taken  out  to  cover  her,  she 
would  consequently  be  kept  where  she  was,  waiting  for  develop- 
ments. In  the  third  case,  that  in  which  we  assume  her  to  be  fully 
insured  against  war  risks  till  completion  of  the  voyage,  the  owners 
would  have  a  free  hand,  at  any  rate  if  they  could  rely  on  or  obtain 
the  co-operation  of  the  crew.  This  reservation  may  or  may  not 
be  important,  but  it  is  by  no  means  to  be  overlooked. 

If,  then,  in   cases    i    and   2,   the  ship  can   leave   a  port  of 


WHEN   WAR   BREAKS    OUT  211 

safety  only  at  her  owners'  risk,  presumably — if  the  risk  be  con- 
sidered grave — she  will  be  ordered  not  to  leave  it.  If,  in  case  3, 
the  owners  have  a  free  hand,  then  other  factors  will  present  them- 
selves. The  cargo  will  probably  though  not  necessarily  be  insured 
against  war  risks,  but  if  the  question  of  such  insurance  is  in  each 
case  an  open  one  as  regards  the  ship,  it  is  much  less  so  in  the  case 
of  cargo  :  the  probability  is — is  greatly,  it  may  be  said — in  favour 
of  the  cargo's  full  insurance.  What,  then,  will  be  the  attitude 
of  the  cargo  owners  ?  This,  in  the  case  of  homeward-bound 
ships,  will  probably  depend  upon  the  markets.  If  the  cargo 
consists  of  raw  material  for  which,  through  the  collapse  of  the 
national  industries,  the  demand  has  fallen  away,  then  the  cargo 
owners  will  be  in  no  anxiety  to  get  it  home  to  pay  storage  on  it. 
If  on  the  other  hand  it  be,  for  example,  food-stuffs  of  which  the 
value  is  running  up  rapidly,  then  they  will  be  keenly  anxious  to 
get  delivery  of  it.  If  in  such  a  case  the  ship  be  not  insured 
against  war  risks  it  might  even  be  worth  their  while  to  come  to 
terms  with  the  shipowners  on  this  point,  in  order  to  obtain 
resumption  of  the  voyage. 

But  the  underwriters  on  the  ship,  if  she  were  insured  as  in 
alternative  (3),  and  the  underwriters  on  the  cargo,  have  their  own 
position  to  consider.  Having  possibly  already  suffered  losses 
by  capture,  and  being  perhaps  unable  to  protect  themselves  b\' 
re-insurance,  their  apprehensions  of  further  losses  may  drive  them 
to  open  negotiations,  with  the  shipowners  if  the  ship  herself  be 
in  question,  or  with  the  cargo  owners  if  the  cargo  be  at  stake,  to 
keep  the  ship  in  safety  for  a  longer  or  shorter  time.  All  these 
things  are  matters  of  business  and  hard  cash,  and  the  sailing  or 
not  sailing  of  a  vessel  from  her  port  of  safety  may  quite  possibly, 
in  some  cases  at  any  rate,  turn  on  such  considerations.  The 
views  and  decisions  of  the  parties  will  in  their  turn  of  course 
be  influenced  by  practical  considerations,  such  as  distance  and 
situation  of  the  port  of  safety  in  respect  of  destination  ;  the  degree 
of  danger  likely  to  attend  completion  of  the  voyage ;  and,  as 
comprehending  both  of  these,  the  degree  of  confidence  in  the 
measures  taken  by  the  navy  to  police  the  route.  The  degree  of 
the  traders'  confidence  in  the  scheme  of  commerce  defence  will, 
of  course,  be  the  foundation  and  the  key -stone  of  the  answer  to 

14—2 


212  WHEN   WAR    BREAKS    OUT 

the  enquiry  with  which  our  remarks  set  out.  Or  the  answer 
may  be  provided,  wlicn  the  time  comes,  in  quite  another  way  : 
the  Government  ma\'  fiiul  that  the  only  means  of  cutting  a 
Gordian  knot  which  tics  up  our  suppHcs  at  ports  of  loading;,  of  call 
and  coalinj;,  will  he  that  the  state  shall  take  on  itself  the  risk  of 
capture  both  of  ship  and  cargo.  But  a  decision  in  this  sense  will 
involve  problems  numerous  and  involved,  and  by  no  means  to  be 
solved  at  short  notice. 


During  subsequent  Progress  of  Hostilities 

If  from  the  first  it  should  be  apparent  that  our  command  of 
the  sea  will  be  practically  complete,  or,  in  other  words,  that  the 
government  measures  for  the  protection  of  our  commerce  may 
on  the  whole  be  confidently  relied  on,  there  would  of  course  be 
nothing  to  prevent  the  coming  and  going  of  our  ships  as  usual. 
Nothing,  that  is  to  say,  except  the  important  facts  that  there  will 
be  presumably  a  disastrous  fall-ofif  in  the  fetching  and  carrying 
to  be  done,  and  that  in  any  case  there  will  be  no  trade  at  all  as 
between  ourselves  and  the  enemy  and  his  allies.  There  cannot 
be  a  war  for  arms  and  a  peace  for  commerce :  such,  at  least,  is 
the  British  law.  And  if  the  enemy  and  his  allies  have,  in  times 
of  peace,  given  our  shipping  much  employment,  this  effect  of 
war  may  itself  be  serious  enough.  The  enemy  will  no  doubt 
obtain  from  us,  and  we  from  him,  indirectly,  products  indispens- 
able to  either  and  not  otherwise  obtainable ;  but  these,  probably, 
will  be  comparatively  unimportant.  Most  serious  of  all  will 
be  the  general  fall-off  in  trade.  Widespread  apprehensions, 
financial  chaos  and  unemployment  will  bring  trade  practically 
to  a  stop.  Foodstuffs  and  such  raw  materials  as  may  be 
required  for  limited  manufacture  will  still  demand  transport ; 
but  traders  everywhere,  like  the  shipowners  already  mentioned, 
will  stand  by  and  await  developments.  The  world's  demand 
for  manufactured  goods  will  come  to  a  stop,  or  something  not 
far  short  of  it.  Consequently  the  importation  of  raw  materials 
will  be  seriously  affected,  and  goods,  if  manufactured,  will 
remain  on  hand.  Apart,  then,  from  risks  of  capture — which^ 
after  all,  however  great,  will  always  be  paid  for  and  undertaken 


SAILING   UNDER   CONVOY  213 

to  meet  the  urgent  calls  of  trade — shipowners  will  have  to  face 
the  results  of  trade  depression  in  their  gravest  form.  And  trade 
depression,  even  in  ordinary  times,  means  much  tonnage  lying 
idle.  Risk  of  capture  will  mean  high  insurance  premiums  and 
high  wages  to  the  crew,  and  consequently  high  freights.  So 
long,  however,  as  merchants  are  willing  to  pay  the  high  freights, 
there  will  be  shipowners  in  plenty  ready  to  compete  for  the 
business.  And  merchants  will  be  willing  enough  to  pay  the 
freights  and  the  costly  insurance  on  their  goods  if  they  can  still 
sell  them  to  a  profit.  It  is  just  a  question  of  the  urgency  of 
demand.  When,  for  example,  in  the  Confederate  war,  we  badly 
wanted  American  cotton  and  the  Confederates  urgently  required 
to  sell  it  to  us,  shipowners  and  crews  alike  were  willing  to  run  the 
risks  of  the  American  blockaders — at  a  price.  And  our  importers 
gladly  paid  the  price.     And  so  it  will  ever  be. 

But,  though  war  may  lay  up  many  ships  for  want  of  freights, 
it  may  find  employment  for  not  a  few  in  the  transport  of  troops 
or  stores.  Notably  the  South  African  war,  though  it  affected 
trade  but  little,  gave  much  war-employment  to  our  shipping. 
But  the  case  was  exceptional.  Whether  and  to  what  extent  a 
war  near  home  would  call  for  the  use  of  merchant  shipping  for 
the  conveyance  of  troops  and  materials,  of  coal  and  supplies, 
is  another  question. 

Sailing  under  Convoy 

Seeing  that  it  is  a  century  since  British  shipping  was  required 
to  sail  with  convoy,  to  include  a  reference  to  the  subject  in  a 
treatise  on  ocean  commerce  of  to-day  may  seem  superfluous. 
Still,  history  has  an  awkv/ard  way  of  repeating  itself;  and  who 
shall  say  that  a  system  deemed  necessary  in  the  interests  of 
old-time  commerce  may  not  once  more  be  found  to  have  its  uses  .'' 

Under  the  Convoy  Act  of  1798  stringent  provisions  were 
made  against  sailing  without  convoy,  leaving  convoy,  sailing 
without  proper  signalling  flags,  omitting  to  destroy  sailing  in- 
structions in  the  face  of  imminent  risk  of  capture,  &c.  And  if 
in  the  interests  of  our  traders,  and  in  order  to  prevent  the  enemy 
from  enriching  and  equipping  himself  by  seizing  our  ships,  the 
convoy  system  was  deemed  necessary,  it  was  also  necessary  to 


214  SAILING    UNDER   CONVOY 

make  it  compulsory.  Ships  then,  as  now,  could  (whether  they 
in  fact  did  so  or  not)  cover  themselves  against  war  risks,  and 
the  temptation  to  act  independently  and  possibly,  on  occasion, 
with  the  underwriters  to  fall  back  on,  to  chance  the  risk  of 
capture,  must  sometimes  have  been  considerable.  With  markets 
perhaps  for  a  long  time  starved,  to  be  the  first  to  secure  shore 
labour  and  supply  them  must  have  meant  much  to  the  merchants, 
and  they  must  often  have  chafed  bitterly  at  having  their  speedy 
and  well-found  ships  held  back  in  the  interests,  or  owing  to  the 
limitations,  of  some  antiquated  tub  ;  for  the  speed  of  the  convoy 
had  of  course  to  be  kept  down  to  that  of  the  slowest  of  the  fleet. 

The  judicial  records  of  old  times  contain  many  interesting 
and  instructive  cases  of  legal  process  between  underwriters  and 
assured  for  failure  or  alleged  failure  of  the  latter  to  give  a  strict 
fulfilment  of  the  policy  warranty  as  regards  their  sailing  with 
convoy.  A  vessel  stops  behind  to  complete  her  loading  and  so 
vitiates  the  policy.  Another  pleads  unsuccessfully  that  being 
under  the  protection  of  a  man-of-war  was  a  compliance  with  the 
warranty.  But  no :  a  convoy  means  a  naval  force  under  the 
command  of  a  person  so  appointed :  the  convoyed  vessels 
receive  sailing  orders  from  the  admiral,  in  order  that  they  may 
know  the  signals  for  the  places  to  which  they  are  to  steer  in  case 
of  temporary  dispersion.  The  ship  in  this  case  was  lost  actually 
after  she  had  joined  the  convoy,  but  her  failure  to  make  her 
start  with  convoy  was  a  fatal  breach  of  the  insurance  warrant}'. 

The  system  of  convoy  was  in  former  times  a  special  feature 
of  maritime  warfare.  From  the  very  earliest  days  it  had  been 
customary  for  merchantmen  to  sail  in  fleets,  and  later  when  war 
came  the  state  naturally  provided  such  fleets  with  armed  protec- 
tion ;  and  as  the  fleet  had  got  to  be  thus  protected  the  state 
declined  to  permit  of  exceptions.  Out-going  ships  were  obliged  to 
sail  for  a  safe  rendezvous,  there  to  join  the  merchantmen  waiting 
to  be  convoyed  beyond  the  danger  zone.  The  Act  6  Anne  cap.  1 3 
(1707)  provided  that  43  ships  of  war  should  be  told  off  to  act  as 
convoys  in  proper  stations.  The  1798  Act  has  been  already 
mentioned.  In  1803  (43  Geo.  ill  c.  57)  stringent  convoy  regula- 
tions were  once  more  laid  down  in  "  An  Act  for  the  better 
protection  of  the  trade  of  the  United  Kingdom  during  the  present 


SAILING   UNDER   CONVOY  215 

hostilities  with  France."  The  minimum  fine  for  sailing  without 
convoy  or  unlawfully  separating  from  convoy  was  ;^5o,  with  a 
maximum  of  ;^iooo  in  the  case  of  ordinary  cargoes  or  ;^i5oo 
for  cargoes  including  naval  or  military  stores.  And,  further,  as  a 
wholesome  deterrent  against  irresponsibility,  in  case  of  breach  of 
the  law  all  insurances  were  not  only  to  be  void,  and  without  return 
of  premium,  but  any  one  acting  in  disregard  of  the  voidance 
incurred  a  penalty  of  .^200.  But  in  1872  (35  and  36  Vic.  c.  63) 
this  Act,  with  other  enactments  "  which  have  ceased  to  be  in  force 
or  have  become  unnecessary  ",  was  added  to  the  legislative  scrap- 
heap.  Previously,  in  1864  (27  and  28  Vic.  c.  25  :  the  Naval  Prize 
Act)  the  fine  had  been  reduced  as  below.  The  Naval  Discipline 
Act  of  1866  (29  and  30  Vic.  c.  109)  imposes  penalties  on  naval 
officers  for  neglect  of  duty  in  respect  of  convoy  service,  and  on  the 
other  hand  authorises  them  to  use  force  to  compel  obedience  on 
the  part  of  convoyed  ships.  The  King's  Regulations,  referring  to 
the  duties  of  naval  officers  in  charge  of  convoy,  provide  that  an 
officer  "  is  to  keep  the  merchant  ships  well  collected,  and  while 
he  will  endeavour  to  proceed  with  all  possible  expedition,  he  will 
be  careful  not  to  proceed  at  a  greater  speed  than  will  admit  of 
the  slowest  ships  keeping  company  with  him  without  risk  of 
straining  the  ships  or  doing  injury  to  their  machinery  and  boilers." 
And  "  in  case  of  disobedience  on  the  part  of  the  master  of  any 
convoyed  ship,  the  officer  in  command  of  the  convoy  is  to  report 
the  facts  to  the  Admiralty,  specifying  the  name  of  the  ship  and 
master  and  the  name  and  residence  of  the  owner."  Offending 
masters  are,  under  the  Naval  Prize  Act,  liable  up  to  a  penalty  of 
^500  and  one  year's  imprisonment,  as  the  court  may  judge. 

The  conditions  have,  however,  so  greatly  altered  that  it  may 
well  be  doubted,  even  if  we  had  the  convoying  ships  to  spare, 
whether  any  system  of  convoy  could  be  evolved  which  would  be 
approved  by  shipowners.  Fast  steamers  would  probably  lose  more 
in  demurrage  than  they  would  .save  in  insurance  premium.  In  the 
former  days,  too,  more  especially  with  the  then  laws  as  regards 
the  right  to  capture  enemy  goods  under  the  neutral  flag,  we  were 
commercially  masters  of  the  seas.  Under  the  altered  condition.s, 
the  owners  of  our  fast  steamers  will,  in  the  lamentable  event  of  war, 
be  most  unwilling  to  subject  themselves  to  exasperating  convoy 


2i6  SAILING    UNDKR    CONVOY 

re^uil.'itions,  if  neutral  free  lances  are  able  to  compete  with  them 
under  no  such  ciisadvantajrcs.  It  seems,  therefore,  very  doubtful 
whether  the  convoy  system  will  ever  be  revived  unless  ship- 
owners themselves  cry  out  for  it ;  and  that  they  will  at  any  rate 
not  do  so  with  a  joint  and  corporate  voice  is  highly  probable. 
The  late  Admiral  Colomb  was  of  opinion  that  to  adopt  the 
convoy  system  under  modern  conditions  would  subject  trade  to 
paralysis.  The  policing  of  main  routes  is,  of  course,  another 
question  altogether. 

National  Guarantee:  National  Insurance: 
National  Indemnity 

Seeing  that  we  are  an  island  state,  depending  entirely,  both 
for  our  export  trade  and  for  the  import  of  our  food  supplies  and 
raw  materials,  on  our  shipping,  it  is  clear  that  any  hostile  inter- 
ference with  our  vast  oversea  transport  system  might  be  fraught 
with  consequences  of  the  utmost  gravity.  If  our  raw  materials 
ceased  to  come  to  us  and  we  were  cut  off  as  well  from  the  markets 
for  which  our  manufacturers  produce,  the  trade  of  the  country 
must  perforce  come  to  a  stop  :  there  would  be  no  work  and  conse- 
quently no  wages  for  the  workers  ;  the  country  would  be  smitten 
with  paralysis.  Still  more  serious,  however,  would  be  any  inter- 
ference with  our  food  supplies,  and  the  mere  possibility  of  such 
a  dire  calamity  is  a  "  heel  of  Achilles  "  to  the  Empire.  Of  every 
five  loaves  we  consume,  four  have  been  sold  to  us  over  the^hip's 
rail  ;  about  two-fifths  of  our  meat ;  considerably  more  than  half 
of  our  eggs,  butter  and  cheese;  and  so  on.  In  food,  drink  and 
tobacco  we  import  annually  about  250  millions  sterling.  This 
means  ;^685,cxx)  a  day,  ;^28,ooo  an  hour,  £^7S  a  minute.  Such 
facts  and  figures  as  these  speak  volumes  for  our  dependence 
on  the  seas,  for  the  supreme  necessity  for  a  supreme  navy. 

Some  ten  years  ago  a  popular  awakening  to  this  dependence 
on  our  command  of  the  seas  for  our  daily  bread,  not  to  mention 
other  foods,  resulted  in  a  general  agitation  for  enquiry  as  to  the 
possibilities  of  our  position  in  the  event  of  war.  The  matter  was 
continually  raised  in  Parliamentary  discussions  ;  and  the  Govern- 
ment, either  to  satisfy  public  opinion  or  to  remove  a  cause  of 


NATIONAL    INDEMNITY  217 

constant  interpellation,  decided  on  a  public  enquiry.  A  Royal 
Commission  was  appointed  accordingly.  The  Commission  took 
two  years  on  their  responsible  task,  during  which  time  they 
called  a  vast  amount  of  evidence  and  were  supplied  with  tables, 
calculations  and  returns  of  great  variety  and  interest.  Also, 
many  .schemes  were  put  before  them  as  solutions  of  the  problem. 
Amongst  these  was  the  storage  of  Government-owned  wheat  in 
Government  granaries  ;  offers  of  inducement  to  importers  and 
millers  to  keep  larger  supplies  in  store  ;  offers  of  inducement  to 
the  purchasers  of  oversea  wheat  to  bring  it  home  and  store  it 
here  instead  of  keeping  it  in  store  in  the  country  of  its  production 
until  its  sale.  As  to  this  last,  it  may  be  here  remembered  that 
such  wheat  is  largely  purchased  as  a  speculation  ;  that,  when  once 
it  has  been  decided  to  ship  it,  it  may  be  sold  over  and  over  again 
before  the  carrying  vessel  reaches  her  final  port  of  call;  and  that 
it  may  eventually  be  ordered  to  either  a  British  or  some  Con- 
tinental port.  Then  there  was  also  an  ingenious  scheme  under 
which  all  imported  wheat  should  pay  a  tax  or  charge,  to  be  re- 
mitted in  the  case  of  wheat  kept  in  store  after  arrival  for  a  period 
of  four  months.  The  Commission  fully  recognised  the  great 
importance  of  the  subject,  but,  with  a  dissenting  minority,  found 
against  all  the  schemes.  In  their  reasoned  opinion  the  disadvant- 
ages and  evils  which  seemed  to  them  inseparable  from  all  or 
nearly  all  of  the  schemes  were  greater  than  any  benefit  likely  to  be 
derived  from  them.  Government  purchases  would  involve  serious 
losses ;  much  disturbance  would  be  caused  to  the  grain  trade ; 
and  the  very  existence  of  Government  stores  would  tend  to 
discourage  private  enterprise  ;  and  so  on.  As  to  the  supplies 
likely  to  be  available  on  sudden  demand,  the  usual  supply  of 
about  17  weeks  in  September  would  not,  in  the  Commission's 
opinion,  be  likely  to  fall  below  7  or,  except  perhaps  in  August, 
6^  weeks. 

But  this,  it  is  here  submitted, is  a  dangerous  fallacy.  The  Royal 
Commission  appear  to  have  lost  sight  of  or  failed  to  appreciate 
the  important  fact — for  it  is  confidently  submitted  that  it  is 
a  fact — that  the  outbreak  of  war  will  be  immediately  followed 
by  the  holding  up  of  a  very  large  proportion,  perhaps  most,  of 
the  wheat  on  the  way  to  us.     This  has  already  been  discussed 


2i8         NATIONAL   GUARANTEE:    NATIONAL 

on  p.  209.  Ships  with  {Train  at  loadinf^  ports,  ports  of  coaling 
and  ports  of  call  will  practically  all  be  held  up  on  a  policy  of 
wait  and  see.  (Here  let  the  reader  turn  back  to  what  has  just 
been  said  above  as  to  the  tremendous  flow  of  necessary  food 
which  is  always  j^ouring  into  the  country  in  an  unbroken  stream.) 
At  a  nieetinj;  of  the  Chamber  of  Shipping  not  long  ago  one  of 
the  speakers  said  : 

"  How  many  owners  in  the  event  of  our  being  at  war  were 
likely  to  risk  their  property  by  sending  their  ships  to  sea  ?  A  few, 
of  course,  would  do  so,  but  a  larger  number,  who  were  trustees 
for  other  people,  would  not,  he  thought,  dare  to  move  their  vessels 
out  of  port,  provided  they  were  in  a  safe  position." 

Imagine  the  effect  on  the  public  on  its  being  known  that  our 
food  supplies  had  thus  been,  in  effect,  turned  off  at  the  meter ! 
The  Royal  Commission  had,  naturally  enough,  capture  primarily 
in  their  minds,  but  if  the  supplies  fail  to  reach  us  they  will,  in 
fact,  be  cut  off — only  temporarily,  it  is  true — but  it  will  be  most 
of  all  at  the  first  pinch  that  we  shall  have  to  fear  food  panic.  It 
is  the  panic,  a  "  psychological "  shortage,  not  a  real  shortage, 
that  we  have  most  to  fear  and  guard  against.  The  Royal 
Commission  themselves  observe  that  it  would  be  unwise  to 
disregard  the  dangers  that  might  accrue  from  such  a  cause.  A 
panic,  they  say,  "  might  have  a  very  serious  effect  in  hampering 
Government  action  in  time  of  war  ";  and  the  fact  is  indeed  patent 
enough. 

Then  again,  as  regards  the  minimum  6^  weeks'  supply  that 
may  be  counted  on  "  in  a  normal  year '' :  it  hardly  seems  so 
much  the  question  of  whether  the  supply  actually  on  hand  when 
war  breaks  out  will  be  6|  or  i6h  weeks'  supply,  as  of  how  long  the 
normal  or  the  actual  supply  will  withstand  an  utterly  abnormal 
demand.  What  happened  when  we  had  the  railway  strike  and 
the  coal  strike  ?  People  filled  up  with  supplies  :  they  were  going 
to  take  no  risks.  And  so  when  the  floods  occurred  in  Paris.  The 
Press  stated  that  half  the  population  were  in  a  state  bordering  on 
panic,  rushing  to  buy  up  provisions  like  mad  people.  "  It  would 
not  be  surprising  ",  it  was  stated,  "if  an  enormous  rise  in  the  price 
of  living  did  take  place,  not  because  of  a  real  dearth  of  food  so 
much  as  on  account  of  the  panic."     A  real  shortage  and  a  feare 


INSURANCE:    NATIONAL    INDEMNITY        219 

shortage  are  of  course  two  entirely  different  things,  but  at  a 
given  moment  they  may  produce  precisely  the  same  effect.  And 
what  effect?  Not  that  a  6|  weeks'  supply  will  remain  on  the 
market  for  6^  weeks,  but  that  it  will  be  cleared  off  at  once  ;  the 
conditions  will  be  by  no  means  normal.  An  expert  witness  of 
the  highest  standing  as  a  corn-trade  authority  gave  it  as  his 
opinion,  in  his  evidence,  that  practically  all  the  available  supply 
would  be  absorbed  in  a  day  or  two.  And  it  seems  likely  enough. 
The  Report,  it  must  be  confessed,  is  not  a  reassuring  one ;  and 
the  fact  that  it  was  made  eight  years  ago  and  envisaged  the 
naval  situation  as  it  then  was,  does  not  make  it  better. 

But  there  was  one  recommendation  or  proposal  which  did 
commend  itself  to  the  Royal  Commission.  "  We  are  "  they  said 
"  of  opinion  that  a  system  of  National  Indemnity  against  losses 
from  capture  by  the  enemy  would  operate  both  as  an  additional 
security  to  the  maintenance  of  our  oversea  trade  and  as  an  im- 
portant steadying  influence  upon  prices."  For  various  excellent 
reasons  they  preferred  Indemnity  to  Insurance.  It  may  here  be 
well  to  make  clear  the  difference  between  the  two.  Under  National 
Indemnity  or  Guarantee,  shipowners  or  cargo-owners  would  not 
insure  against  the  risk  of  hostilities  at  all,  but  would  simply  look 
to  the  Government  for  indemnification  or  compensation  in  the 
event  of  capture.  Under  National  Insurance,  premiums  would 
have  to  be  paid  to  the  Government  in  the  first  instance.  Only, 
these  premiums  could  be  on  a  stable  and  moderate  basis,  and 
would,  consequently,  not  be  rushed  up  on  war,  or  fear  of  war,  to  a 
point  which  would  add  seriously  to  the  cost  of  bread.  Or  there 
might,  perhaps,  be  a  sort  of  middle  course  in  which  shipowners 
paid  something  in  the  nature  of  a  tonnage  levy,  to  go  to  a  national 
fund.  But,  broadly,  the  Indemnity  system  is  a  gratuitous  one, 
the  Insurance  system  one  involving  payment  of  a  premium  of 
some  kind.  To  go  back,  however,  to  the  reasons  given  by  the 
Commission  for  recommending  a  system  of  National  Indemnity. 
These  reasons  omit  any  reference  whatever  to  the  all-important 
fact  that  without  such  system  our  supplies  on  the  way  are  likely  to 
be  held  up  short  of  their  destination,  the  risk  of  what  the  Com- 
mission term  a  "  psychological  "  rise  in  prices  and  of  consequent 
food  panic  and  run  on  the  supplies  being  thus  greatly  aggravated. 


220        NATIONAL   GUARANTEE:    NATIONAL 

In  due  course  a  Treasury  Committee  was  appointed  specially 
to  consider  and  report  on  the  recommendation  of  the  Royal 
Commission  as  to  Indemnity.  The  Committee  examined  29 
witnesses,  of  whom  8  were  underwriters,  and  were  careful  to 
explain  at  the  outset  of  their  Report  that  for  the  purposes  of 
their  enquiry  they  had  assumed  throughout  "  that  the  British 
fleet  would  be  strong  enough  to  secure  and  thereafter  to  maintain 
command  of  the  sea."  Presumably  they  accepted  as  to  this  the 
dates  and  data  of  the  Royal  Commission  of  several  years  earlier. 
It  will,  however,  be  seen  that  their  reservation  conveys  no 
recognition  of  the  fact  that  command  of  the  sea  has  to  be 
demonstrated,  and  that  this  demonstration  may  take  time.  The 
food  question  will  be,  we  may  suppose,  in  its  most  acute  form 
between  the  outbreak  of  war,  or  possibly  a  little  earlier,  and  the 
final  and  conclusive  demonstration  of  our  naval  predominance. 
In  fact,  the  flaw  in  the  reports  both  of  the  Royal  Commission 
and  of  the  Treasury  Committee  is  that  they  deal  with  the  risks 
or  course  of  a  war  as  a  single  whole,  whereas,  for  the  purposes 
of  food  supplies,  the  consideration  falls  really  under  two  separate 
and  distinct  heads :  that  preceding  and  that  succeeding  the 
conclusive  demonstration  of  predominance.  The  Treasury  Com- 
mittee do  indeed  admit  that  "some  ships  might  be  detained  in 
port "  (query,  port  of  loading  or  home  port  meant  ?)  "  for  a  short 
time  whilst  their  owners  watched  the  development  of  events  and 
decided  upon  the  best  course  to  pursue";  but  if  home-coming 
vessels  were  referred  to,  the  effect  of  these  "  some  "  detentions 
for  "  a  short  time"  was  not  viewed  in  its  right  perspective  ;  for  the 
report  goes  on  to  add  that  "  British  shipping  is  too  important  a 
factor  in  the  world's  carrying  trade  to  admit  of  any  large  portion 
of  it  for  long  remaining  idle."  The  Committee  had  apparently 
got  firmly  into  their  minds  that  the  subject  was  one  and  indi- 
visible; and  this  is  where,  in  the  writer's  judgment,  they  went 
astray.  "  We  do  not  therefore  regard  this  as  a  serious  danger"  ; 
and  thus  is  dismissed  what,  to  many,  will  seem  the  most  serious 
aspect  of  the  whole  consideration.  Then  to  their  conclusion  : — 
"  After  reviewing  the  schemes  that  were  brought  before  us,  and 
the  criticisms  that  were  passed  upon  them,  we  are  unable  to 
recommend  any  of  them  for  acceptance  " — and  away  went  all 


INSURANCE:    NATIONAL    INDEMNITY         221 

the  schemes  accordingly, — the  writer's,  sad  to  relate,  with 
them.  In  efifect,  these  were  all  Insurance  schemes,  though 
not  necessarily  involving  payment  of  premium  as  ordinarily 
understood  :  this  is  obviously  impracticable.  But  if  payment  of 
a  fixed  levy  constitutes  insurance,  then  no  doubt  they  were,  in 
such  a  sense,  Insurance  schemes.  It  would,  however,  be  more 
correct  to  describe  them  as  schemes  of  Indemnity  by  Purchase. 
The  Committee  then  dealt  with  free  National  Indemnity  or 
National  Guarantee,  pure  and  simple.  Against  this  there  were 
also  various  reasons  with  "insuperable  difficulties."  It  was, 
however,  added,  "  On  the  other  hand  it  is  possible  that  if  a 
scheme  of  indemnity  commended  itself  to  the  public  on  general 
grounds,  means  might  be  found  for  overcoming  the  difficulties 
in  question."  Still,  a  National  Guarantee  "  could  not  of  itself 
secure  the  safe  arrival  of  ships  and  cargoes  ",  which  is  sufficiently 
obvious  ;  but  what,  it  is  here  submitted,  it  would  do  would  be  to 
promote  the  sailing  or  home-coming  of  ships  loading  and  on  the 
way  when  war  broke  out  and  so  to  prevent  the  cutting  off  of  our 
stream  of  supplies  at  an  exceedingly  critical  juncture — a  highly 
important  aspect  of  the  case,  and  one  which  might  well  have 
received  special  consideration.  "  At  this  point,  therefore,  we 
reach  the  conclusion  that  the  dangers  to  be  apprehended  from 
our  present  situation,  and  the  advantages  which  could  under 
any  circumstances  be  secured  by  a  National  Guarantee,  are 
neither  of  them  so  great  as  the  advocates  of  such  proposals 
have  generally  supposed.  We  admit,  however,  that  these 
dangers  do  exist  to  some  extent,  and  that  a  suitable  scheme  of 
National  Guarantee,  if  such  could  be  devised,  would  diminish 
though  it  could  not  absolutely  remove  them."  Finally,  the 
Committee  were  "  unable  to  recommend  any  form  of  National 
Guarantee  against  the  war  risks  of  shipping  and  maritime  trade, 
except  that  which  is  provided  by  the  maintenance  of  a  powerful 
Navy."  Captain  Sir  Charles  Ottley,  R.N.,  added  a  reservation  of 
his  opinion  that  "  It  would  be  very  regrettable  if  the  Committee's 
inability  to  recommend  State  action  to-day  should  come  to  be 
regarded  as  definite  proof  of  the  uselessness  and  impracticability 
under  any  circumstances  in  the  future  of  any  scheme  of  National 
Guarantee";  adding,  "  In  any  case  the  Committee  will  not  have 


222  NATIONAL    GUARANTEE 

laboured  in  vain  if  its  Report  serves  to  attract  public  attention 
to  a  matter  which  is  of  some  moment  from  the  point  of  view  of 
national  interests."  A  memorandum  by  Sir  George  Clarke  goes 
incidentally  to  confirm  what  has  already  been  pointed  out  as  to 
the  failure  of  the  Committee  to  recognise  the  danger  of  our  food 
supplies  being  held  up  at  the  outbreak  of  war.  "  The  only  justifica- 
tion," he  remarks,  "  for  any  form  of  National  Guarantee  of  the 
war-risks  of  shipping  and  cargoes  is  the  strong  presumption  that 
excessive  or  violently  fluctuating  insurance  rates  might  have 
disastrous  effects  upon  the  shipping  and  mercantile  interests, 
and  through  them  upon  the  nation  at  large" — the  "only  justifi- 
cation." It  is,  indeed,  a  remarkable  fact  that  the  special  danger 
due  to  a  paralysis  of  our  homeward  shipping  on  the  outbreak  of 
war  seems,  almost  from  first  to  last,  to  have  escaped  any  adequate 
attention.  In  a  final  memorandum,  written  at  Bombay,  referring 
to  a  scheme  of  his  own,  Sir  George  Clarke  says  "  I  am  convinced 
that  the  outbreak  of  war  with  a  strong  naval  Power  will  cause  a 
disturbance  in  the  insurance  market  of  which  we  can  form  no 
adequate  idea,  and  that  this  disturbance  will  rc-act  upon  our 
whole  economic  structure  with  grave  results.  If  the  Navy  is 
sufficient  and  efficient,  the  critical  period  will  not  be  of  long 
duration  ;  but  meanwhile  irreparable  injury  may  be  effected  " — 
a  just  appreciation  of  the  position. 

It  may  be  objected  that  if  the  Royal  Commission  and  the 
Treasury  Committee  concentrated  their  attention  on  the  progress 
of  the  hostilities  as  a  whole,  the  writer  has  here  confined  his  to  the 
period  essentially  of  their  inception.  His  object  has  been  to  show, 
however,  that  whether  the  Treasury  Committee's  conclusion  was 
right  or  wrong  as  a  whole,  it  was  apparently  wrong  in  its  failure 
to  appreciate  that  the  problem  to  be  faced  when  war  breaks  out 
is  entirely  distinct  from  that  which  will  exist  subsequently. 

As  regards  Sir  Charles  Ottley's  reservation,  it  may  be  added 
that  the  shipowners  at  any  rate  are  greatly  disinclined  to  regard 
the  Treasury  Committee's  Report  as  the  last  word  on  the  subject, 
and  that  they  have  appointed  a  special  committee  to  consider  and 
report  upon  the  situation. 


CHAPTER  V 

Ships'  Papers  in  War 

A  ship's  papers  come  under  two,  or  indeed  three,  separate 
heads.  Every  maritime  state  has  its  own  national  or  domestic 
laws  under  which  its  national  merchant  shipping  is  obliged,  as 
such,  to  carry  certain  papers.  Then,  the  Customs  laws  and 
requirements,  more  particularly  of  the  port  of  destination,  may 
oblige  a  vessel  to  carry  certain  cargo-papers  which  in  other 
cases  might  be  unnecessary.  Finally,  there  are  the  papers  which 
a  vessel  must  carry  in  compliance  with  the  laws  of  maritime 
warfare,  in  order  to  prove  her  right  to  be  allowed  to  proceed 
safely  on  her  voyage.  The  papers  which  a  vessel  is  obliged  to 
carry  by  her  own  national  laws  should  serve  to  establish  her 
nationality  and  probably  also  her  voyage.  And  in  old  days  the 
papers  which  she  was  obliged  to  carry  for  her  own  Customs  and 
for  the  Customs  at  her  destination  would  ordinarily  serve  to  prove 
the  ownership  and  nature  of  her  cargo.  But  while  on  the  one  hand 
the  "Free  Ships,  Free  Goods"  law  of  1856  (the  Declaration  of 
Paris)  has  largely  abolished  the  old-time  necessity  for  proofs  as 
regards  ownership  of  cargo,  since  the  neutral  flag  makes  neutral 
cargo  of  it ;  in  our  own  case  at  any  rate,  papers  which  were  at  one 
time  insisted  on  by  our  Customs  have  long  ceased  to  be  requisite. 
Finally,  old  necessities  have  been  removed  and  old  usages  upset 
by  the  development  of  commercial  conditions  entirely  new.  As 
regards  proof  of  nationality  of  ship  at  all  events  the  modern 
papers  are  probably  more  formal  and  conclusive  than  those  of 
ancient  times.  In  the  case  of  the  cargo-papers,  however,  whereas 
they  formerly  went  hand  in  hand  with  the  requirements  of 
maritime  warfare,  this  has  long  ceased  to  be  so.  The  laws 
of  maritime  capture  are,  in  fact,  largely  founded  on  commercial 


224  SHIPS'    PAPERS    IN    WAR 

conditions  which  have  long  ceased  to  exist.  The  laws  as 
wc  ourselves  know  them,  or  assert  them  to  be,  are  to  be  found 
not  in  aiu'  code  or  statute  but  in  our  IVi/.e  Court  judgments  of 
former  days.  And  these  judgments,  if  not,  perhaps,  founded  on 
the  conditions  referred  to,  were  at  any  rate  delivered  with  full 
knowledge  and  recognition  of  them.  And,  by  the  light  of  them, 
the  laws  were  eminently  logical.  It  may  be  and  presumably  is 
the  ca.se  that  if,  formerly,  the  law  took  cognisance  of,  even  if  it 
was  not  actually  founded  on,  the  then  existing  mercantile  usages, 
and  these  usages  no  longer  exist,  the  law  is  none  the  less  the 
law.  Certainly,  this  would  seem  to  be  the  view  of  the  writers  on 
international  law.  But  if  the  law  and  the  mercantile  usage  as 
regards  the  documents  carried  by  a  shipmaster  are  supposed  to 
go  hand  in  hand,  statements  of  the  law  which  are  founded 
essentially  if  not  entirely  on  the  ancient  Prize  Court  judgments 
ought  at  least  to  call  attention  to  the  radical  changes  which  have 
grown  out  of  altered  conditions.  Writers  on  international  law, 
however,  appear  unconsciously  to  regard  the  mercantile  side 
of  the  subject  as  a  by-issue.  Indeed,  they  are  and  must  needs 
be  as  a  rule  but  little  acquainted  with  it,  and  they  ignore  the 
change — either  because  they  fail  to  appreciate  it  or  because,  in 
their  view,  traders  must  in  any  case  adapt  themselves  to  the 
law  as  .set  forth  in  the  text-books.  This,  however,  in  some  impor- 
tant particulars  the  traders  are  no  longer  able  to  do  :  shipmasters 
must  of  necessity  proceed  in  accordance  with  trade  usages,  and  it 
is  idle  to  insist  that  the  law  requires  them  to  be  provided  with 
certain  specific  documentary  proofs  when  the  conditions  of  modern 
trade  are  such  as  necessarily  and  inevitably  to  refuse  to  them 
documents  which,  in  by-gone  days,  were  of  necessity  on  board. 
The  conditions  of  ocean  trade  and  transport  have  entirely 
changed. 

Let  us  first  see  what  the  law  is  declared  to  be.  Hall's 
Principles  of  International  Law  (1904)  states  that  the  documents 
by  which  the  character  of  the  vessel,  the  nature  of  her  cargo  and 
the  ports  from  and  to  which  she  is  sailing  are  shown,  have  to  be 
produced  for  inspection  ;  and  that  according  to  the  English 
practice  "these  documents  ought  generally  to  be" — observe  the 
"  ought "  and  "  generally  " — the  following  : 


SHIPS'    PAPERS    IN    WAR  225 


The  register. 


The  passport  (sea  letter)  issued  by  the  neutral  state. 
The  muster  roll,  containing  the  names,  &c.  of  the  crew. 
The  log-book. 

The  charterparty,  or  statement  of  the  contract   under 
which  the  ship  is  let  for  the  current  voyage. 

6.  Invoices  containing  the  particulars  of  the  cargo. 

7.  The  duplicate  of  the  bill  of  lading,  or  acknowledgment 
from  the  master  of  the  receipt  of  the  goods  specified 
therein,  and  promise  to  deliver  them  to  the  consignee  or 
his  order. 

"  and  the  information  contained  in  these  papers  is  in  the  main 
required  by  the  practice  of  other  nations."  Why  the  Manifest  is 
omitted  from  the  list,  does  not  appear. 

Lawrence's  hiternational  Law  (191 1)  mentions  "an  official 
log-book,  a  ship's  log-book  ",  manifest,  bills  of  lading  and  (if  any) 
charterparty.  Hall  speaks  of  "  practice  ",  Lawrence  says  that 
the  master  "should  have"  certain  documents.  Hall  mentions 
Invoices,  Lawrence  does  not.  Hall  mentions  "the"  log-book, 
while  Lawrence — no  doubt  properly — mentions  both  logs.  Text- 
book writers,  therefore,  do  not  agree  in  their  lists ;  and  this  is  not 
much  to  be  wondered  at.  It  is  ift  every  case  pretty  evident  that 
they  have  gone  for  their  information  to  the  old  Prize  Court  judg- 
ments and  done  the  best  they  could  with  them. 

But  on  one  point  they  practically  all  are  solid  :  the  bills  of 
lading  must  be  there.  Hall,  apparently  troubled  by  some  mis- 
giving, says  that  "the  duplicate"  of  the  bill  of  lading  must  be 
there ;  but  technically  there  is  no  such  thing  as  a  "  duplicate " 
of  a  bill  of  lading.  If  three  go  to  the  set,  each  of  them  is  an 
original.  The  duplicate  of  any  signed  document  is,  signature  and 
all,  exactly  the  same  as  the  original :  it  is,  in  fact,  what  it  describes 
itself:  a  duplicate  (of  the  original).  A  copy  copies  the  body  and 
the  signature  indiscriminately — if,  indeed,  it  be  necessary  to  copy 
the  signature  at  all — and,  unlike  a  duplicate,  is  in  no  sense  an 
original  and  cannot,  if  the  original  be  lost,  have  the  force  of  the 
original.  Lawrence  states  that  "  the  law  of  each  maritime 
country  fixes  for  its  merchantmen  the  exact  form  and  number  " 
of  the  papers  required  to  prove  nationality,  voyage  and  cargo ; 

o.  15 


226  SHIPS'    PAPERS    IN    WAR 

but  here  he  seems  to  have  expressed  himself  incautiously. 
Dr  Hans  Wehberg  in  his  work  Capture  on  Land  and  Sea  (191 1), 
referring,  from  the  German  point  of  view,  to  the  papers  to  be 
inspected  by  a  boarding  officer,  .sa)'s  "lastly,  the  bills  of  lading 
give  information  as  to  the  character  of  the  cargo."  The  United 
States  Naval  War  Code,  1900,  Art.  33,  states  that  "the  papers 
generally  expected  to  be  on  board  of  a  vessel  are 

1.  The  register. 

2.  The  crew  and  passenger  list. 

3.  The  log-book. 

4.  A  bill  of  health. 

5.  The  manifest  of  the  cargo. 

6.  A  charterparty,  if  the  vessel  is  chartered. 

7.  Invoices  and  bills  of  lading": 

but  apparently,  as  the  result  of  technical  discussion,  the  whole 
code  was  by  Order  No.  150,  4  February  1904,  withdrawn,  though 
not,  so  far  as  can  be  gathered,  because  of  any  question  whatever 
as  regards  the  acceptance  of  this  particular  clause. 

As  evidence  of  the  uncertainty  or  indefiniteness  on  the  subject 
generally,  and  taking  the  United  States'  requirements  as  an 
example,  it  may  be  mentioned  that  Mr  Atherley-Jones's  excellent 
Commerce  in  PF"«r(  1907)  gives  the  United  States  list  as  follows: 

Certificate  of  Registry  ;  or 

Provisional  Certificate  of  Ownership  issued  by  U.  S.  Consuls 
to  citizens  of  the  U.  S.  purchasing  vessels  in  foreign  ports. 

Sea  Letter  (occasional). 

Shipping  Articles. 

Muster  Roll. 

Permit  to  touch  and  trade  (fishing  vessels). 

Manifest  of  Cargo, 

Log- Book. 

Bills  of  Lading. 

Charterparty,  if  the  vessel  is  chartered. 

Why  the  Muster  Roll  as  well  as  the  Shipping  {i.e.  Ship's) 
Articles  should  be  necessary  is  not  clear,  since,  apparently,  the 
modern  Ship's  Articles  are  themselves  the  ancient  Muster  Roll. 

In  Mr  Atherley-Jones's  book  we  read  that  the  Charterparty 
"is  almost  invariably  on  board  "  and  that  Bills  of  Lading  "  usually 


SHIPS'   PAPERS    IN    WAR  227 

accompany  each  lot  of  goods."  By  the  light  of  this  statement  it 
is  not  easy  to  understand  the  immediately  following  remark  or 
explanation  that  "  a  bill  of  lading  on  board  a  vessel  is  the 
duplicate  of  the  document  given  by  the  master  to  the  shipper  of 
the  goods  upon  shipment" — unless,  indeed,  by  "duplicate"  is 
meant  "  captain's  copy."  Professor  Oppenheim,  in  his  Interna- 
tional Lazv  {igo^),  says  that  the  bills  of  lading  are  "duplicates  of 
the  documents  which  the  master  of  the  vessel  hands  over  to  the 
shipper  of  the  goods  at  shipment "  ;  but  what  the  law  actually 
contemplates  is  apparently  the  bills  of  lading  themselves — for 
these  were,  in  fact,  for  the  reason  we  know — namely,  the  necessity 
for  getting  them  to  the  ship's  destination  as  soon  as  the  ship  (pp. 
82-83) — formerly  on  board.  As  already  said,  there  is  no  such 
thing  as  a  "  duplicate  "  bill  of  lading — each  one  is  an  "  original." 
Next,  we  are  told  that  "the  invoices  should  always  accompany 
the  cargo."  Apparently  Mr  Atherley-Jones  draws  some  distinc- 
tion in  his  mind  between  the  presence  of  a  document  "  on  board  " 
and  the  fact  of  its  "accompanying"  the  goods.  Then,  the  Manifest, 
among  other  information,  has,  he  observes,  to  state  the  names  of 
the  consignees.  But  practically  consignees  are  always  as  name- 
less as  the  Witch  of  Endor — unless,  indeed,  "  Order  "  be  a  name — 
for  bills  of  lading  are  almost  invariably  made  deliverable  "to  order" 
and  not  to  consignees  by  name  (p.  82).  The  bills  of  lading,  having 
been  endorsed  at  the  outset  by  the  shippers,  are  then  further  en- 
dorsed and  presented  by  the  consignees,  whoever  they  may  be. 
The  Manifest,  we  read,  is  "  usually  signed  by  the  ship-broker  who 
clears  the  vessel  out  at  the  Custom-house,  and  by  the  master." 
As  a  matter  of  fact,  the  manifest  is  ordinarily  compiled  from 
what  are  known  as  the  captain's  copies  of  the  bills  of  lading 
after  the  ship  has  sailed.  What  these  copies  are  will  be  explained 
presently.  The  British  law  says  that,  within  six  days  after 
clearance,  a  manifest  (as  defined)  compiled  "  according  to  the 
bills  of  lading"  shall  be  "delivered  to  the  Customs."  The 
Customs  at  the  port  of  clearance  and  the  Customs  at  the  port 
of  arrival  each  require  a  manifest  or  cargo-list,  and  in  the  old 
days,  and  for  the  reason  already  mentioned,  that  required  at  the 
arrival  port  had,  like  the  bills  of  lading,  to  be  on  board.  Pages 
347,    352    of    Mr    Atherley-Jones's   work    above   cited    contain 

15-2 


228  SHIPS'    PAPERS    IN    WAR 

a  list  of  the  papers  "  carried  by  vessels  of  the  chief  maritime 
powers  as  evidence  of  their  nationality,  and  other  pai:>ers  which 
ought  to  be  found  on  board."  This  word  "  ought  "  troubles  most 
people,  and  none  the  less  when  lists  of  papers  do  not  distinguish 
between  those  which  must  and  those  which  ought  to  be  on  board. 
The  writers  on  International  Law  mostly  devote  a  chapter  or 
a  couple  of  chapters  to  Ships'  Papers,  but  Professor  Holland's 
Manual  of  Prize  Lazv,  1888,  deals  with  Papers,  Visit  and 
Search,  Capture,  Adjudication,  etc.,  specially.  Like  more  recent 
works,  however,  it  fails  to  take  note  of  the  altered  conditions. 

It  is  clear,  then,  from  the  foregoing  that  if,  in  war,  the 
captain  of  a  neutral  vessel  wishes  to  be  able  to  satisfy  a  boarding 
officer  that  the  vessel,  as  regards  herself,  her  cargo  and  her 
voyage,  is  entitled  to  be  left  free  to  proceed  on  her  course,  he 
must  produce  certain  papers.  Amongst  these,  we  are  told,  are 
more  especially  the  manifest,  the  bills  of  lading,  the  charterparty 
if  the  vessel  be  under  charter,  and — apparently — the  invoices. 
As  the  result  of  a  long  period  of  peace  at  sea  it  must  needs  be 
expected  that  the  requirements  of  the  laws  of  maritime  warfare 
would  in  actual  commercial  practice  have  been  lost  sight  of  In 
the  event  of  war,  therefore,  the  inability  of  a  captain  to  produce 
the  requisite  cargo  evidences  may  of  course  have  serious  con- 
sequences for  himself  It  may,  however,  not  be  out  of  place 
here  to  remind  ourselves  that  the  occasions  for  capture  have 
themselves  been  greatly  narrowed  down.  In  the  old  days  the 
offence  of  engaging  in  prohibited  trades  was  rife,  false  papers 
being  largely  used  in  its  disguise.  So  far  as  one  can  tell, 
this  offence  is  not  likely  to  prevail,  or  at  any  rate  to  be 
important,  under  the  conditions  now  existing.  Then,  too, 
neutral  ships,  wherever  met,  might  be  liable  to  capture  for 
carrying  enemy  cargo,  whether  under  false  papers  or  not ;  and 
the  "  Free  Ships,  Free  Goods "  law  now  makes  such  carriage 
lawful,  with,  consequently,  no  occasion  for  false  papers.  So  that, 
putting  these  two  cases  aside,  as  well  as  that  of  enemy  ownership 
of  ships  which  ipso  facto  will  be  lawful  prize,  not  much  will 
remain.  Our  own  ships  and  those  of  our  allies  will  need  our  own 
naval  investigation,  lest  they  should  be  engaged  in  trading  with 


THE  BILL  OF  LADING  229 

the  enemy  or  in  other  prohibited  trade.  And  neutral  vessels  may- 
need  investigation  either  on  the  possibility  of  breach  or  intended 
breach  of  blockade  or,  if  they  are  sailing  towards  the  enemy's 
dominions,  on  the  possibility  that  they  may  be  carrying  contra- 
band to  him.  But  these  grounds  for  possible  capture — if  others 
have  not  been  overlooked  or  be  not  in  the  future  declared — must 
needs  fall  short  of  those  previous  to  the  Declaration  of  Paris. 

In  any  case,  when  war  breaks  out  it  seems  probable  that 
many  vessels  will  be  without  the  cargo  papers  which  in  former 
days,  for  reasons  which  have  now  largely  passed  away,  were 
carried  as  a  matter  of  course.  But  apparently  a  broad  line  may 
be  drawn  between  the  case  of  a  vessel  which  sailed  before  and 
without  thought  of  war,  and  that  of  a  vessel  which  sailed 
after  and  with  full  knowledge  of  war.  For  after  war  broke  out 
there  would  perforce  be  a  general  tightening-up,  and  no  neutral 
vessel  would  be  likely  to  court  the  risk  of  capture  through  want 
of  papers  the  absence  of  which  would  expose  her  to  capture. 
Let  us,  however,  consider  the  changes  which  have  taken  place  in 
ocean  trade ;  and  these  we  shall  see  well  enough  if  we  deal  with 
the  notable  illustration  of  the  Bill  of  Lading. 

The  Bill  of  Lading 

In  the  very  early  days  of  ocean  transport  there  was  no  such 
thing  as  an  ocean  post.  The  bills  of  lading,  or  at  any  rate  one 
of  the  set,  had,  therefore,  of  necessity  to  be  on  board  the  carrying 
ship.  The  introduction — partial  introduction — of  the  Postal 
Packet  Service  from  Falmouth  in  1688  no  doubt  itself  effected  a 
gradual  but  radical  change  in  the  conditions,  and  the  introduc- 
tion of  steam  navigation  and  ocean  mailships  completed  it.  The 
Act  3  &  4  Wm.  IV,  c.  52  (1833,  repealed  in  1845)  required  captains 
to  produce  to  the  Customs  "  any  bills  of  lading  or  a  true  copy 
thereof";  a  "true  copy"  meaning  presumably  one  so  certified. 
But  this  is  comparatively  a  recent  date  :  the  original  bill  of  lading 
was  evidently  not  always  then  on  board.  In  1801  however  it 
was  usually  on  the  ship,  for  we  read  in  Steel's  Ship-Masters' 
Assistant  of  that  year  that  of  the  three  copies  of  the  bill  of 
lading  "one  should  be  remitted,  by  the  first  post  after  signing,  to 
the  person  the  goods  go  to  ;  another  be  sent  him  by  the  ship  ;  and 


230  TIIK  HILL  OF  LADING 

the  third  remain  with  the  shipj>er  ;  besides  which,  a  fourth  should 
be  made  out,  to  be  given  to  the  master  for  his  government,"  this 
last  being  the  important  though  unsigned  copy  now  known  as  the 
"  Ca|)tain's  Copy."  In  ancient  days,  and  in  the  remote  but  more 
recent  times  when  postal  ser\icc  was  infrequent,  the  bill  of  lading 
had  of  necessity  to  be  on  board,  probably  in  charge  either  of  the 
captain  or  of  a  supercargo,  because  there  could  otherwise  be  no 
certainty  of  the  consignees  having  it  when  the  ship  arrived  with 
the  goods.  But  the  shipper  of  the  goods  now  posts  one 
copy  of  the  bill  of  lading  to  the  consignee  direct,  and  sends  him 
a  second  copy  ("the  one  of  which  being  accomplished,  the  others 
to  stand  void  ")  by  the  next  following  mail  or  by  an  alternative 
route ;  and  usually,  so  much  faster  and  more  direct  is  the  post, 
that  in  most  cases  both  of  the  copies  will  be  delivered  before  the 
arrival  of  the  ship.  It  may  be  objected  that  the  bill  of  lading  is 
in  any  event  not  required  at  the  port  of  discharge  before  the  arrival 
of  the  ship,  and  that  it  might  just  as  well  be  sent  in  charge  of 
the  captain  now  as  formerly.  And  if  the  mercantile  conditions 
— the  mercantile  financial  conditions — were  the  same  to-day  as 
they  were  a  century  ago  it  might  possibly  be  so  sent.  But  the 
introduction  of  steam  navigation  and  ocean  mails  in  conjunction 
with  the  vast  developments  of  trade  and  of  the  great  industry 
of  shipowning  has  put  oversea  commerce  on  a  footing  entirely 
different  from  that  which  it  formerly  occupied.  First  we  have 
the  evolution  of  shipowning  into  an  enterprise  quite  apart :  the 
exceptional  has  become  the  universal.  Formerly,  to  a  very 
important  extent,  the  great  merchants  were  those  who  owned 
ships  for  transport  of  their  own  trade,  carrying  the  goods 
of  rival  traders,  for  reward,  only  so  far  as  their  own  goods 
might  not  fill  the  ship.  The  captain  was  the  servant  of  the 
merchant-owners,  and  either  he  or  a  supercargo  on  their  staflf 
took  charge  of  the  bills  of  lading.  Nowadays  there  is  no  com- 
munity of  this  kind  between  the  shippers  and  the  shipowners. 
Scores  or  hundreds  of  merchants  send  their  goods  down  to 
the  ship,  and  the  loading  brokers  or  owners  on  behalf  of  the 
captain  sign  the  bills  of  lading  and  return  them,  so  executed, 
to  the  shippers.  A  shipper  is  no  more  going  to  leave  the  owners' 
receipt  for  his  goods  in  the  owners'  or  their  captain's  hands  than 


THE  BILL  OF  LADING  231 

he  will  lend  a  man  i^ioo,  and  allow  him  to  retain  possession  of 
his  I.O.U.  Besides,  in  most  cases  the  modern  conditions  of 
ocean  trade  are  such  that  the  shippers  require  and  must  have  the 
bills  of  lading.  Banks  and  financial  houses  have,  under  modern 
conditions,  sprung  up  in  countless  numbers.  The  shipper  of  the 
goods  frequently  wants  his  money  for  them  forthwith ;  and  this 
payment  he  obtains  by  drawing  on  the  consignee  for  the  amount 
of  his  invoice,  with  the  bills  of  lading  as  collateral  security  to 
the  banker  or  financier  who  purchases  or  advances  against  his 
draft.  This  will  be  sufficiently  clear  from  what  has  been  said  on 
the  subject  above,  the  Export  and  Import  of  cargo  (pp.  179,  182). 
The  shipper,  consequently,  must  have  the  bills  of  lading  :  it 
is  a  matter  of  course  and  practice  that  he  shall  have  them. 
Consequently  they  cannot  be  on  board  the  ship.  Under  the 
extraordinary  pressure  of  modern  ocean  trade,  moreover,  with 
ships  taking  in  goods  up  to  the  very  moment  of  their  casting  off, 
not  a  few  bills  of  lading  are  not  signed  or  even  written  out  for 
signature  until  after  the  ship  has  sailed. 

When  the  carrying  steamer  is  a  mail  steamer  or  a  fast  cargo- 
liner  carrying  passengers,  then,  perhaps,  the  bills  of  lading  will 
be  on  board  ;  and  precisely  for  the  ancient  reason,  that  they 
must  be  at  the  destined  port  when  the  ship  arrives  there,  and 
that  any  other  means  of  forwarding  them  would  get  them  there 
too  late.  But  by  no  means  "  on  board  "  in  the  ancient  sense  : 
the  captain  will  not  have  them  in  his  keeping,  and  will  not  know 
whether  they  are  on  board  or  not.  They  will  be  in  a  letter,  one 
of  thousands,  in  the  inviolate  mail  bags,  and  if  all  the  envelopes 
could  be  spread  before  him  the  captain  would  have  not  the 
smallest  notion  which  of  them  contained  them.  As  regards  the 
mail  bags,  the  second  Peace  Conference  of  1907  at  the  Hague, 
Chapter  i,  Article  i,  provides  that  "the  postal  correspondence  of 
neutrals  or  belligerents,  whatever  its  official  or  private  character, 
found  on  board  a  neutral  or  enemy  ship  on  the  high  seas,  is 
inviolable.  If  the  ship  is  detained,  the  correspondence  is  for- 
warded by  the  captor  with  the  least  possible  delay  " — but  this  is 
not  to  apply  to  the  cases  of  violation  of  blockade. 

It  will  be  seen,  then,  that,  whatever  the  requirement  of  the 
laws  of  maritime  warfare,  the  bills  of  lading  in   modern  times 


232  THK   HILL  OF  LADING 

practicall)'  never  can  be  and  never  will  be  amongst  the  docu- 
ments which  a  neutral  shipmaster  will  be  able  to  place  before  a 
belligerent  boarding  officer.  None  the  less,  the  ancient  Prize  Court 
judgments  leave  no  doubt  that  the  bills  of  lading  have  to  be  on 
board,  and  the  text-writers  quite  correctly  represent  the  law 
accordingly.  With  the  informal  "Captain's  Copies"  it  is  a 
different  story.  If  on  board,  they  would  he.  prima  facie  evidence 
of  the  packages  in  the  ship  ;  but,  as  will  presently  appear,  not 
only  is  there  no  general  rule  that  they  shall  be  on  board,  but,  if 
on  board,  their  description  of  the  packages  to  which  they  relate 
may  still  be  no  definite  indication  of  the  actual  contents  of  the 
packages. 

Bills  of  Lading:    "Captains'  Copies" 

The  "  Captain's  Copy  "  of  the  bill  of  lading,  though  having  at 
present  no  sort  of  legal  status,  is  a  document — if  a  term  so 
formal  can  be  applied  to  it  at  all — of  no  small  practical  im- 
portance. It  is  stated  that  some  countries  require  that  in  the 
case  of  imported  goods  the  Captain's  Copies  shall  bear  a  consular 
certification.  So  long  as  the  captain  had  charge  of  the  signed 
bills  of  lading  there  would  apparently  be  not  much  advantage  in 
supplying  him  with  copies.  If  for  any  purpose  copies  may  have 
seemed  desirable  it  would  be  open  to  the  captain  to  make  them 
out  for  himself  or  for  his  owners,  on  the  voyage  ;  and  possibly 
sometimes  he  may  have  done  so.  But  when  the  shippers  took 
to  insisting  on  retaining  the  bills  of  lading  in  their  own  possession, 
a  new  situation  was  created.  For  what  was  there  to  prevent 
a  dishonest  shipper  from  tampering  with  his  bills  of  lading,  so 
that  a  set  of  three  bills  of  lading  each,  say,  for  13  packages  of 
merchandise,  might  be  made  to  appear  to  be  for  30  packages? 
Or  supposing  that  the  Mate's  Receipt  contained  a  note  that  the 
goods  were  "  in  bad  condition  ",  and  this  note,  duly  transferred  by 
the  shipowners  to  the  bills  of  lading  when  they  signed  them, 
was  fraudulently  removed  by  the  shipper  }  The  captain  and  the 
ship's  agents  at  port  of  discharge  must  have  protection  against 
fraudulent  alterations  of  the  signed  document.  Consequently 
(as  may  be  presumed)  the  system  of  the  "Captain's  Copy" 
came  to  be  adopted.     It  is  termed  the  "Captain's  Copy",  but 


BILLS  OF  LADING:   "CAPTAINS'   COPIES"     233 

it  may  mean  several  copies — two,  or  three,  or  four.  In  some 
cases  it  is  tacitly  a  condition  of  shipment  that  when  the  shippers 
write  out  their  stamped  forms  for  signature  by  or  on  behalf  of 
the  shipowners  they  shall  write  out  in  addition  as  many 
copies,  not  stamped  and  not  for  signature,  to  be  retained  by 
the  shipowners,  as  the  latter  shall  require.  Very  often,  how- 
ever, the  copies  are  made  out  by  the  shipowners  or  loading- 
brokers  themselves.  There  is  no  rule.  On  each  copy  so  made  out 
are  boldly  written  or  rubber-stamped  the  words  "CAPTAIN'S 
COPY."  If,  say,  three  of  such  copies  be  required,  probably  one 
will  be  retained  by  the  shipowners,  and  two  sent  (by  following 
mails)  to  the  ship's  agents  at  the  port  of  discharge.  Or  possibly 
one  may  be  supplied  to  the  captain,  who  in  such  event  will  have 
on  board  a  complete  file  of  copies  of  all  the  bills  of  lading  relating 
to  his  cargo — always  provided  that  some  of  the  bills  of  lading 
were  not  signed  after  the  sailing  of  the  ship.  A  fourth  copy  may 
perhaps  be  required  in  the  case  of  through-shipment  to  some 
inland  city  beyond  the  port  of  discharge,  in  conjunction  with 
a  railway  company,  in  which  event  it  will  be  sent  to  the  agents 
at  such  city.  There  is,  however,  no  sort  of  general  rule  on  the 
subject :  each  shipping  line  has  its  own  office  system.  In  very 
many,  perhaps  most,  cases  the  Captain's  Copies  may  be  posted 
simply  to  the  ship's  agents  at  the  port  of  discharge,  but  there  is  no 
rule  about  it.  Where  a  file  of  the  Captain's  Copies  is  supplied  to 
the  ship,  this  may  be  in  order  that  a  "  Ship's  Manifest "  may  be 
compiled  from  them  on  the  voyage.  If  a  complete  file  of  the 
Captain's  Copies  should  be  on  board  it  would  probably  be  an 
authentic  list  of  the  cargo,  for  anything  that  such  a  list,  in  a 
particular  case,  might  be  worth  (as  to  which,  see  below) :  but 
a  Captain's  Copy,  not  being  signed  or  ordinarily  certified,  or 
attested,  can  hardly  be  considered  a  formal  document.  And  the 
file  might  or  might  not  on  occasion  be  complete — for  reasons 
already  mentioned. 

It  is  sometimes  stated  that  the  Mate's  Cargo-book  or  the 
Stowage  Plan  will  supply  a  list  of  the  cargo.  The  mate, 
especially  when  a  large  number  of  ports  has  to  be  called  at,  may 
very  possibly  keep  a  list  of  all  the  packages  taken  on  board, 
with  their  marks  and  a  note  of  their  place  of  stowage,  in  order  to 


234      HILLS  OF  LADING:   "  CAPTALNS'  COPIES" 

know  wIkmc  to  find  them  on  arrival  at  port  of  discharge  and  to 
prevent  the  risk  of  their  being  over-carried.  But  if  he  should  in 
fact  have  such  a  book  or  plan — he  must  have  a  Cargo-book  on 
coastal  vo)'ages,  ma)-  \ery  likel)'  have  it  on  a  short-sea  voyage, 
and  will  most  likely  not  have  it  for  a  long-sea  voyage — it  will 
presumably  contain  simply  the  marks  and  numbers  of  the  pack- 
ages and  the  name  of  the  port  which  is  marked  upon  them.  To 
him  they  will  be  simply  cases  or  bales  or  casks,  and  there  is 
ordinarily  no  reason  why,  except,  perhaps,  in  the  case  of  coastal 
voyages,  he  should  either  know  or  concern  himself  with  their 
contents. 

Industrial  Goods  and  Raw  Material 

Goods  outward  bound  from  an  industrial  country,  and  raw 
produce  bound  to  an  industrial  country,  involve  very  different 
conditions  or  possibilities.  Let  us  look  first  at  the  case  of  the 
homeward-bound  or  raw  material  cargo.  All  oversea  ports 
have  as  a  rule  their  own  special  class  of  export  cargo.  It  may 
be  wool,  cotton,  tea,  indigo,  seed,  rice,  skins,  hemp,  rubber  or 
other  goods.  Whatever  their  description,  they  are  severally  at 
every  port  made  up  in  the  locally  accustomed  manner,  and  the 
ship's  officers  can  see  at  a  glance  or  know  almost  in  the  dark 
what  will  be  the  contents  of  this  or  that  package.  Ordinarily 
the  bill  of  lading  will  be  simply  for,  say,  AZ  lOO  bales  cotton, 
or  lOO  bales  wool,  or  loo  chests  tea.  If  the  shipment  be  of 
various  qualities  many  countermarks  may  be  employed — as  AZ 

B 

20  bales,  AZ  5  bales,  AZ  30  bales ;  and  so  on.     It  may  mean, 
c  D 

in  certain  instances,  a  long  string  of  marks,  so  long  that  it  has 
to  be  detailed  on  the  back  of  the  bill  of  lading.  Ordinarily, 
however,  it  is  simply  an  affair  of  so  many  bales  of  wool  or 
cotton,  or  chests  of  tea  or  cases  of  indigo  or  packages  of 
rubber ;  and  so  forth.  The  contents  are  practically  always 
specified :  there  is  no  room  for  any  doubt  as  to  the  goods. 
There  is  no  reason  why  the  contents  of  the  packages  should 
not  be  correctly  stated,  and  every  reason  why  they  should 
be.     The   ship's  officers  will   see  to  this,  because  the  rate  of 


INDUSTRIAL  GOODS  AND  RAW  MATERIAL     235 

freight  may  vary  more  or  less  with  the  kind  of  goods.  The 
packages  show  for  themselves,  to  the  experienced  officer,  what 
are  the  contents,  and  it  will  not  be  worth  anybody's  while  to 
declare  high-scheduled  goods  under  a  low-schedule  description, 
since  the  fraud  would  almost  certainly  be  detected.  For  these 
several  reasons,  then,  bills  of  lading  for  genuine  homeward  cargo 
will  generally  afford  a  correct  and  honest  description  of  the 
goods. 

But  now,  take  the  case  of  Industrial  or  Manufactured  goods. 
Here  we  are  on  different  ground  altogether.  Cases  may  contain 
butter  or  they  may  contain  cheese,  and  a  dishonest  shipper  may 
seek  to  impose  on  the  shipowners  by  declaring  as  low-scheduled 
goods  packages  which  ought  to  pay  the  higher  rate.  Or 
merchants  or  manufacturers,  knowing  well  in  particular  circum- 
stances that  a  shipment  of  arms  or  ammunition  is  contrary  to 
proclamation  or  regulations,  may  describe  such  cargo  as  innocent 
goods — as,  for  example,  a  shipment  not  long  ago  described — 
and  correctly  described — as  safes  was  found  (somebody  played 
informer)  to  consist  of  safes  packed  full  of  rifles.  The  point  is 
that  goods  may  be  legitimately  described  in  a  bill  of  lading  as,  for 
example,  hardware,  ironware,  cutlery,  fancy  goods,  or  chemicals 
without  such  a  description  importing  any  indication  of  their  real 
nature  (cf  p.  176).  Hardware  may  be  bedsteads,  carriage  fittings, 
fire-irons  ;  or — why  not  ? — rifles,  camp  utensils  or  grenade-cases. 
Ironware  may  be  stoves  or  it  may  be  horseshoes  or  bits.  Cutlery 
may  be  scissors,  razors,  knives;  or  swords  or  bayonets.  Fancy 
goods  may  be  toys,  knicknacks  ;  or  revolvers.  Chemicals  may  be 
druggists'  stores  or  they  may  be  the  components  of  high  explo- 
sives. And,  of  course,  by  a  description  directly  fraudulent,  mill 
machinery  at  the  bottom  of  the  hold  may  be  big  guns.  In  our 
case  the  Crown  does  not  impose  on  shipowners  or  captains  the 
obligation  to  know  what  their  export  cargo  actually  consists  of 
They  must  not  carry  goods  prohibited  by  law,  and  they  might 
find  it  inconvenient  if  such  an  uncontemplated  offence  were  to 
be  brought  home  to  them :  but  otherwise  they  are  not  expected 
to  possess  an  accurate  knowledge  which  is  in  fact  impossible  to 
them  (p.  239).  In  these  days  when  everything  is  cut  fine  in  trade, 
nearly  every  class  of  goods  has  its  own  scheduled  rate  of  freight ; 


236     INDUSTRIAL  GOODS  AND  RAW  MATERIAL 

and  shipowners,  if  for  no  other  reason,  ma)-  be  counted  on  to 
secure,  to  the  best  of  their  ability,  a  correct  description  in  their 
bills  of  lading.  But,  after  all,  they  are  pretty  much  in  the  hands 
of  the  shippers,  and  are  vcr)-  much  and  sometimes  very  uncom- 
fortabl)'  alive  to  the  fact. 

What,  however,  is  a  belligerent  boarding  officer  to  do  who 
finds,  in  the  Ship's  Manifest  or  in  a  Captain's  Copy,  mention  of 
a  shipment  of  50  cases  hardware,  ironware,  cutlery,  fancy  goods 
or  chemicals?  The  description  tells  him  nothing.  The  innocent 
words  may  quite  possibly  be  a  cover  for  rifles,  horseshoes,  swords, 
revolvers  or  compounds  for  explosives.  If  the  ship  should  prove 
to  be  bound  for  a  port  which  he  is  compelled  to  accept  as 
neutral,  the  fact  will  solve  his  difficulty  ;  but  if  the  destination 
be  hostile,  what  course  will  be  before  him  ?  As  to  finding  the 
doubtful  packages  and  getting  them  on  deck  to  examine  them, 
to  any  one  acquainted  with  the  capacity  and  stowage  methods 
of  modern  shipping,  the  suggestion  will  be  absurd.  If,  however, 
the  captain  is  unable  to  state  what  are  the  specific  goods  which 
he  is  carrying  under  descriptions  so  vague  and  general  as  to  be 
valueless,  the  consequences  must  rest  upon  himself.  It  is  clearly 
his  business  to  know  what  his  cargo  is  and  to  be  able  to  submit 
documentary  proofs.  As  to  the  mill  machinery  in  the  hold,  in 
the  absence  of  sufficient  grounds  for  suspecting  it  to  be  of 
a  nature  much  less  innocent,  it  would  be  a  risky  proceeding  to 
send  the  ship  in  solely  on  the  chance  of  finding  that  the  cases 
contained  not  machinery  but  big  guns.  Still,  if  the  suspicion 
as  to  the  mill  machinery  was  there,  vagueness  of  description  as 
regards  other  goods  or  other  irregularity  might  acquit  the  officer 
if  he  felt  it  to  be  his  duty  to  order  the  ship  in  on  the  ground  of 
such  vagueness  or  irregularity.  But  it  is  to  be  presumed  that  in 
view  of  the  difficulties  of  the  situation  generally,  naval  officers,  if 
the  time  should  come,  will  be  provided  with  something  more 
definite  for  their  guidance  than  the  conclusions  which  they  may 
be  able  to  draw  from  the  ancient  Prize  Court  judgments,  or 
which  are  formulated  for  them,  on  those  judgments,  by  the 
text-writers. 

In  the  foregoing  remarks  relating  specially  to  homeward 
cargoes,  cargoes  ordinarily  of  native  produce  or  raw  materials. 


SHIPS   "FOR   ORDERS"  237 

"  general  ships,"  i.e.  ships  loaded  on  the  berth  with  mixed  goods 
shipped  by  various  merchants  to  various  consignees,  were  chiefly 
in  view.  The  case  of  "  full  cargoes  ",  more  especially  of  grain, 
calls  for  consideration  by  itself  Full  cargoes  may  consist,  of 
course,  of  many  products  besides  grain,  but  whereas  goods  other 
than  grain  as  a  general  rule  (though  not  necessarily)  have  their 
destination  fixed  in  advance,  full  cargoes  of  grain  very  frequently 
(though  not  necessarily)  sail  for  a  destination  undetermined 
when  they  sail.  The  subject  has  already  been  discussed 
(p.  91).  Full  cargoes  are  ordinarily  carried  under  charter:  a 
form  of  charterparty  used  in  the  River  Plate  trade  has  been  dealt 
with  on  p.  yy.  Different  trades  have  their  several  forms  of 
charterparty,  but  probably  in  all  of  them  the  principle  is  much 
about  the  same. 

Ships  "For  Orders" 

It  has  been  explained  that  full  cargoes,  more  especially  of 
grain,  may  be  sold  over  and  over  again,  from  the  moment  the 
grain  is  shipped — or,  indeed,  before  it  is  actually  on  board — until 
arrival  of  the  vessel  at  her  port,  or  final  port,  of  call.  At  each 
sale  the  bills  of  lading,  the  insurance  policy  and  the  charterparty 
or  a  copy  of  it  pass  into  possession  of  the  purchaser,  and  he 
acquires  the  right  to  determine  which  shall  be  the  vessel's  port  of 
destination.  Of  course,  he  will  not  get  the  documents  until  he 
has  paid,  and  the  date  or  process  of  payment  varies  according  to 
the  trade.  The  port  of  destination  may  be — according  to  the 
terms  of  the  charter — any  port  in  the  United  Kingdom  or  on 
the  Continent  between  Bordeaux  or  Hamburg,  both  included. 
The  final  purchaser  of  the  cargo  may  be  British,  German,  Dutch, 
Belgian  or  French,  and  until  the  captain  receives  his  cable 
instructions  at  the  port  at  which  the  charter  requires  him  to  call 
for  orders,  he  will  remain  in  ignorance  as  to  his  port  of  destination, 
even  as  to  the  country  in  which  it  is  situated.  The  writer  was 
informed  at  the  office  of  one  of  the  best-known  grain  importers 
and  dealers  in  the  world  that,  when  the  grain  market  is  excited, 
the  same  cargo  may  be  sold  and  re-sold  perhaps  several  scores 
of  times,  and  that  in  the  case  of  one  particular  parcel  of  250 
tons  they  counted  up  that  it  had  been  sold  over  100  times,  they 


238  SHIPS   "FOR    ORDERS" 

themselves  having  bouglit  and  re-sold  it  more  than  half  a  dozen 
times.  This  may  be  strictly  accurate  or  not,  but  it  serves  at  any 
rate  to  show  the  great  importance  of  the  modern  speculation  by 
sales  "  to  arri\e." 

Of  course,  if  the  ship  be  enemy-owned,  she  will  be  liable  to 
capture,  whatever  her  voyage.  If  she  be  a  neutral  ship  visited 
before  arrival  at  her  port  of  call,  and  her  cargo  be  of  a  nature 
which,  if  bound  to  whatever  port  of  the  enemy,  would  be  contra- 
band— or  which,  if  bound  to  a  particular  port  of  the  enemy,  would 
be  contraband — then,  apparently,  she  would  be  subject  to  capture  : 
whether  subject  to  condemnation  or  not  would  hav^e  to  be  deter- 
mined on  the  facts.  For  if  the  ship  might  in  fact  be  going  to 
a  port  which  would  make  her  cargo  contraband,  and  the  captain 
had  no  knowledge  of  whether  he  was  going  there  or  not  and  was  not 
in  a  position  to  show  that  he  was  not  going  there,  the  facts  would 
certainly,  as  it  would  seem,  justify  her  capture  with  a  view  to 
adjudication.  And  if  ever  war  should  break  out  suddenly, 
neutral  vessels  may  thus  be  met  on  their  way  for  orders  to  a  port 
of  call.  If,  in  such  a  case,  the  vessel's  cargo  could  in  no  case  be 
deemed  contraband,  the  question  of  her  destination  (blockades 
apart)  will  not  arise.  In  the  contrary  case,  i.e.  where  a  certain 
destination  might  make  the  cargo  contraband,  the  question  of 
destination  will  obviously  be  all-important.  If  the  vessel  be 
neither  enemy  nor  neutral,  but  under  the  British  flag,  then,  what- 
ever her  cargo,  another  question  will  arise :  if  the  captain  is 
liable  to  receive  his  orders  for  a  port  of  the  enemy  and  does  not 
know  that  orders  are  not  awaiting  him  in  this  sense,  his  voyage, 
prima  facie,  may  be  considered  as  potentially  illegal  because 
involving  a  possible  trading  with  the  enemy.  Presumably  in 
such  a  case  the  captain  will,  on  learning  the  facts,  make  for  a 
safe  port  and  cable  for  his  owners'  instructions.  But  probably 
one  of  the  first  effects  of  the  outbreak  of  war  will  be  to  put  a 
stop,  if  not  to  calling  for  orders,  at  any  rate  to  charters  which 
may  permit  the  designation  of  a  belligerent  port  as  the  final 
destination. 


MANIFEST  239 

Manifest 

In  the  days  of  heavy  duties  and  strictly  privileged  trades, 
evasions  and  smuggling  were  rife.  Our  Customs  machinery  of 
to-day  is  no  doubt  more  or  less  the  evolution  of  laws  and  regula- 
tions originally  framed  in  such  conditions.  And  in  those  days 
the  Customs  laws  were  stringent  and  far-reaching.  Probably 
this  was  the  case  more  or  less  universally,  but  we  need  only 
glance  at  our  own  laws  as  a  general  illustration.  Not  only  were 
the  formalities  on  sailing  from  or  to  Great  Britain  to  be  strictly 
observed  at  the  port  of  departure,  but  masters  had  to  carry  with 
them  and  to  be  prepared  to  produce  on  demand  of  any  Customs 
officer  when  off  our  coasts  detailed  and  certified  Customs 
certificates  or  "cocquets^"  of  the  cargo  on  board.  We  will  deal 
with  homeward  cargo  presently,  but  in  the  case  of  outward  cargo 
the  Act  26  Geo.  Ill,  c.  40  (1786:  an  "Act  for  regulating  the 
Production  of  Manifests  ")  provided  that  the  master  of  an  out- 
ward-bound ship  must  at  any  time  when  within  four  leagues  of 
the  coast  deliver  to  any  visiting  Customs  officer  "  all  and  every 
cocquet  or  cocquets  delivered  to  him  by  the  proper  officer  of  the 
Customs  "  at  his  port  of  clearance,  in  order  that  the  officer  might 
compare  goods  and  cocquets  ;  with  heavy  penalties  for  refusal  or 
for  inaccuracy.  This  Act  was  "  scrapped"  in  1825.  The  present 
law,  the  Revenue  Act  of  1884,  declares  that  "  Upon  the  exporta- 
tion of  any  goods  for  which  no  bond  is  required,  whether  as 
a  whole  or  part  cargo,  the  master  or  owner  of  the  ship  shall,  by 
himself  or  his  agent,  within  six  days  after  his  final  clearance 
thereof,  deliver  to  the  proper  officer  of  Customs  a  manifest  of  all 
the  shipped  goods  of  every  kind,  setting  forth  the  marks,  numbers 
and  descriptions  of  the  packages,  and  the  names  of  the  consignors 
thereof,  according  to  the  bills  of  lading  relating  thereto,  and  shall 
make  and  subscribe  a  declaration  that  such  manifest  contains 
a  true  account  of  all  the  cargo  of  the  ship."  It  will  be  noticed 
that  the  shipowners  are  allowed  six  days  after  clearance  in  which 
to  deposit  this  list.  They  compile  it — as  indeed  they  are  told  they 
are  to  compile  it — from  the  bills  of  lading.    This  means,  in  practice, 

'  Cocket.  "  A  Custom-house  seal ;  a  certified  document  given  to  the  shipper  as 
a  warrant  that  his  goods  have  been  duly  entered  and  have  paid  duty."  Webster's 
Dictionary. 


240  MANIFEST 

from  the  "captain's  copies."  It  will  be  seen,  from  this,  that  the 
shipowners  are  not  required  to  know,  under  this  regulation, 
anything  about  their  cargo  beyond  what  the  shipper  tells  them — 
chooses  to  tell  them,  it  may  be  said — in  his  bill  of  lading.  Con- 
sequently, if  goods  be  described  in  the  bill  of  lading  as  Hardware, 
Merchandise,  Fancy  Good.s,  Cutlery  or  Chemicals,  shipowners 
will  have  no  knowledge  of  the  nature  of  the  goods  beyond  that 
conveyed  by  such  a  general  description.  If,  however,  for  example, 
certain  descriptions  of  hardware  be  subject  to  special  rates  of 
freight,  then  the  shipowners  may  require  to  be  definitely  informed 
as  to  the  nature  of  the  hardware.  The  precise  information  as  to 
the  nature  of  the  goods  it  lies  on  the  shippers  themselves  to 
furnish  to  the  Customs.  The  Customs  and  Inland  Revenue 
Act  1881,  §13,  enacts  that  within  six  days  of  the  outward 
clearance  of  the  ship,  the  exporter  shall  deliver  to  the  Customs  a 
specification,  on  the  form  provided,  containing  particulars  of  the 
goods.  These  are,  marks  and  numbers  of  the  packages,  number 
and  description  of  the  packages,  quantity  and  description  (and 
whether  British  or  foreign),  value  free  on  board,  and  final 
destination.  We  are  here  dealing  with  duty-free  goods,  as 
serving  for  sufficient  illustration.  The  object  of  the  Customs 
Manifest  is  now  essentially  if  not  solely  to  provide  the  Customs 
with  a  list  which  will  enable  them  to  check  the  exporters' 
entries.  These  entries,  when  all  recorded,  are  "jerqued"  or  com- 
pared with  the  Manifest,  and  any  omission  of  entry  on  the  part 
of  an  exporter  will  thus  be  made  apparent.  It  is,  therefore,  the 
true  and  proper  return  made,  not  by  the  shipowners  but  by  the 
shippers,  on  which  the  Customs  rely ;  and  it  is,  broadly  stated, 
immaterial  to  the  Customs  whether,  for  the  Customs'  purposes, 
the  captain  himself  is  accurately  informed  as  to  his  cargo  or 
not. 

When  goods  are  sent  to  England  for  transhipment,  the  foreign 
shipowners  have  to  send  to  the  British  shipowners  all  the  parti- 
culars required  for  the  purpose  of  the  British  Customs  Entries. 
And  when  such  goods  are  for  a  British  oversea  port  a  Customs 
certificate  relating  to  the  goods  has  to  be  attached  to  the 
clearance.  This  is  to  enable  the  Dominions'  authorities  to 
decide  as  to  the  scale  of  duty  applicable. 


MANIFEST  241 

Imported  goods  need  to  be  separately  considered.  British 
home-coming  vessels  were  by  law — 26  Geo.  Ill,  c.  40  (1786) — 
required  to  have  a  manifest  or  "  content  "  on  board.  Ships  clearing 
out  from  any  oversea  British  port  for  Great  Britain  had  to 
deliver  a  manifest  to  the  local  Customs,  to  be  by  the  Customs 
endorsed  and  returned  to  the  master.  Before  so  doing,  however, 
the  Customs  were  required  to  make  a  duplicate  of  the  manifest 
and  to  transmit  the  same  at  once  to  the  Customs  at  the  ship's 
destination.  The  manifest  had  to  set  forth  particulars  of  the 
ship  and  voyage  and  a  "true  account  of  all  the  cargo",  this 
account  having  to  be  in  great  detail.  On  arrival  within  four 
leagues  of  the  British  coast  the  master  had  to  produce  his  mani- 
fest on  demand  of  the  first  Customs  officer  coming  on  board 
and  to  deliver  a  copy  of  it  to  him  :  the  officer  had  to  endorse  the 
original  and  transmit  the  copy,  also  endorsed,  to  the  Customs  at 
the  port  of  destination.  On  arrival  in  port  the  master  had  to 
hand  over  his  manifest  and,  once  more,  a  copy  of  it.  The  law 
was  exceedingly  strict,  and  any  discrepancy  between  manifest 
and  the  goods  delivered  involved  a  penalty  of  ;^200.  This  law 
was,  as  already  stated,  repealed  in  1825,  and  neither  for  outward 
nor  for  homeward  goods  is  there  now,  so  far  as  the  Customs  are 
concerned,  any  obligation  for  a  manifest  or  "  cocquets "  to  be 
actually  on  board. 

When  a  master  now  makes  his  "  Report  Inwards"  the  printed 
Customs  form  required  for  this  purpose  provides  for  information 
as  to  goods  under  the  following  heading  : — "  Quantity  and 
Contents  of  every  Package  and  Parcel  of  Goods  on  board,  as  far 
as  any  such  particulars  can  be  known  to  the  Master."  The  con- 
cluding words  are  sufficiently  significant  of  the  change  between 
the  new  conditions  and  the  old. 

The  particulars  of  the  goods  required  from  the  consignees — 
to  be  delivered  within  fourteen  days — are  numbers  of  packages  and 
description  of  goods,  in  accordance  with  the  Official  Import  List, 
place  of  shipment,  quantity  and  invoice-cost  plus  freight  and 
insurance.  As  in  the  case  of  the  export  goods,  the  consignees' 
entries  are  "jerqued"  with  the  ship's  list,  as  a  check  against 
omission.  The  ship's  "  Report "  of  the  cargo,  while  in  effect 
a   Manifest,  is  not  so  termed.     It  would  seem  as  if  the  term 

o  i6 


242  MANIFEST 

"  Manifest",  in  the  Customs'  sense,  were  now  used  mainly  if  not 
solely  in  the  case  of  outward  goods  ;  but  if  so  it  is  practically 
a  case  of  two  names  for  similar  documents. 

So  far,  we  have  been  considering  the  manifest  in  its  first 
sense,  namely,  that  of  a  document  to  be  lodged  with  the  Customs. 
But  commonly  ships  are  more  or  less  supposed  to  carry  on 
board  a  manifest  of  their  own,  apart  from  and  altogether  inde- 
pendent of  that  which  has  to  be  lodged  by  them  with  the 
Customs  as  above  stated.  No  doubt  it  was  originally  so  carried 
primarily  in  order  that  the  master  on  arrival  at  his  destination 
might  be  in  a  position  to  comply  with  the  Customs  requirements 
there,  and  also  that  he  might  be  able  to  produce  it  on  arrival  off 
the  coast  to  satisfy  visiting  Customs  officers  that  no  irregularity 
had  taken  place  since  shipment.  Mr  Atherley-Jones  in  his 
Commerce  in  JVar  sets  forth  in  detail  the  list  of  "  Ships'  Papers" 
in  the  case  of  seventeen  maritime  states,  and  in  only  one  instance, 
that  of  Greece,  does  the  manifest  fail  to  appear. 

But  here,  again,  the  establishment  of  the  ocean  mail  system  has 
upset  methods  which  aforetime  were  inevitable.  The  outward 
manifest  had  formerly  to  be  on  board  because  this  was  the  only 
way  to  ensure  its  presence  on  the  ship's  arrival.  What  actually 
happens  now  is  that  the  shipowners  or  loading  brokers  commonly 
make  out  the  ship's  manifest  from  the  Captain's  Copies  of  the 
bills  of  lading,  and  post  it  to  the  ship's  agents  at  the  port  of  dis- 
charge. There  is,  however,  no  fixed  or  general  rule.  Different 
shipping  firms  have  different  methods,  and  these  may  be  founded 
on  the  speed  of  their  ships,  on  mail  facilities,  or  on  the  require- 
ments of  the  particular  port  of  discharge.  If,  for  example,  the 
Captain's  Copies  be  all  complete  when  the  ship  sails,  they  may  be 
sent  on  board  in  order  that  the  chief  steward,  the  purser  or  the 
master  may  compile  the  manifest  on  the  way  out.  A  cargo 
vessel  may  have  on  board  a  manifest  or  "rough  manifest"  which 
contains,  in  fact,  only  the  number  of  the  packages  in  each  ship- 
ment, with  their  marks  and  numbers:  or  it  may  not  have  even 
this.  If  a  mail  steamer  be  in  question,  the  Captain's  Copies 
may  be  sent  on  board  in  order  that  the  manifest  may  be  made 
out  on  the  voyage  ;  or  the  papers  may  be  completed  at  the  office 
of  the  shipowners  or  loading  brokers  and  handed  to  the  captain 


MANIFEST  243 

at  the  last  moment ;  or  if  the  vessel  be  bound  out  through  the 
Suez  Canal  the  manifest  may  be  posted  to  her  at  Marseilles  or 
Port  Said  ;  or  the  papers  may  be  posted  to  the  ship's  agent  and 
so  perhaps  be  in  the  steamer's  mail  bags — where,  also,  will  be 
many  or  most  of  the  bills  of  lading  in  letters  variously  addressed. 
But  for  purposes  of  proofs  the  mail  bags  are  of  course  not  avail- 
able. When,  therefore,  we  read  that  the  law  is  that  the  manifest, 
like  the  bills  of  lading  and  probably  the  invoices,  must  be  on 
board,  we  must  contrast  this  statement,  founded  on  conditions 
which  have  long  passed  away,  with  the  facts  as  they  now  exist. 
If,  as  is  said  to  be  the  case,  at  some  foreign  ports  still  as  in 
ancient  days  with  us,  Customs  officers  are  sent  on  board  to 
inspect  the  manifest  on  approach  of  the  vessel,  then  in  such  cases 
a  manifest,  probably  more  or  less  in  detail,  would  doubtless  have 
to  be  on  board  and  would  be  on  board.  But  even  then  the 
captain  would  be  ignorant  as  to  the  real  contents  of  his  packages. 
Some  states  require  the  manifest  to  be  vised  by  their  Consul  ; 
but  still  it  might  be  posted  to  the  ship's  agents  and  not 
be  actually  on  board.  There  is  no  general  law  or  common 
practice. 

Another  and  radical  change  has  been  introduced  by  the 
calling  of  steamers  at  ports  in  various  countries.  A  steamer 
from  London,  for  example,  may  call  at  Antwerp  and  at  French  or 
Portuguese  or  Italian  ports  on  her  long-sea  voyage.  Shipment 
at  such  ports  would  of  course  be  governed  by  the  local  laws  ;  and 
the  captain  might  still  more  easily  be  imposed  on  as  regards  the 
contents  of  packages  shipped. 

It  may  be  well  to  add  that  in  addition  to  the  manifest 
required  by  the  Customs  in  the  case  of  exported  goods,  and  to 
the  "  ship's  manifest "  which  will  be  required  by  the  Customs  at 
the  port  of  discharge,  there  is  yet  another  manifest  known  to 
shipowners,  or  to  certain  of  them,  as  the  "  freight  manifest ", 
which  is  sent  to  the  ship's  agents  for  their  own  office  infor- 
mation. Three  different  forms  are,  in  fact,  sometimes  used 
by  shipowners  to  meet  the  three  requirements.  Up  to  a  point 
the  same  particulars  are  contained  in  all  three,  namely,  the 
export  information  required  by  our  Customs  authorities — form 

No.  i: 

16—2 


244  MANIFEST 

1.  No.  of  B/L.     Marks.     Nos.     Goods.     Shippers. 

2.  No.  of  B/L.  Marks.  Nos.  Goods.  Shippers.  Con- 
signees ("  Order ").     Measurement.     Weight. 

3.  No.  of  B/L.  Marks.  Nos.  Goods.  Shippers.  Con- 
signees ("Order").  Measurement.  Weight.  Freight  payable 
on  shipment.     Freight  payable  at  destination. 

form  (3)  being  used  for  the  shipowner's  own   office  purposes, 
head  office  or  oversea  office,  as  the  case  may  be. 

The  thought  may  here  suggest  itself,  that  we  have  been 
discussing  Customs'  laws  and  requirements  rather  than  ships' 
papers,  but  the  two  subjects  are  so  closely  identified  that  this 
could  hardly  be  avoided.  And,  of  course,  the  reference  to 
our  own  Customs  is  purely  for  purposes  of  general  illustration. 
Every  country,  naturally,  will  have  its  own  laws  and  usages, 
and  in  some  cases  these  are  minute,  complicated  and  generally 
exasperating.  Red  tape  is  carried  to  an  absurd  length,  so 
much  so  that  greatly  aggrieved  shipowners  may  be  heard  to 
affirm  that  the  object  of  the  whole  thing  is  to  raise  money 
for  the  State  or  for  the  Customs  by  means  of  fines  which  only 
the  most  experienced  or  most  fortunate  can  hope  to  avoid. 
It  is  said  that  the  requirements  of  the  Spanish  ports  and  ports 
of  countries  where  Spanish  influences  still  prevail  are  peculiarly 
exacting.  Ships  bound  to,  or  possibly  from,  such  ports  are 
therefore  likely  to  be  at  all  times  exceptionally  equipped  with 
papers,  all  punctiliously  vised  or  certified. 

Invoices 

An  invoice,  as  will  be  understood  from  what  has  already 
been  explained  (p.  177),  is  a  detailed  statement  of  the  nature, 
quantities  and  price  of  the  goods  to  which  it  relates,  plus  details 
of  the  various  expenses  incurred  between  the  place  of  manufactory 
or  supply  and  the  ship's  deck,  and  plus  the  commission-merchant's 
charge,  the  freight  and  the  insurance  premium.  The  total  thus 
arrived  at  is  known  as  the  "  C.  I.  F. "  cost,  i.e.  Cost,  Insurance 
and  Freight — "  C.  I.  F."  to  be  sometimes  seen  verbalised  as 
"  sif."  "  C.  I.  F.  "  as  distinguished  from  "  F.  O.  B.  "  or  Free 
on  Board,  which  does  not  include  freight  and  insurance.     But 


SUMMARY  RESPECTING  CARGO  DOCUMENTS    245 

where  the  only  thing  in  question  is  the  kind  or  nature  of  the 
goods,  it  is  of  course  immaterial  whether  all  the  charges  are 
brought  into  the  invoice  or  not.  An  invoice  of  industrial  goods 
sent  to  oversea  consignees  will,  however,  ordinarily  include  all 
the  export  and  shipping  charges :  the  grand  total  will,  in  fact, 
be  that  for  which  the  shipper  will  make  out  the  bill  of  exchange 
(if  any)  drawn  by  him  on  the  consignee.  In  the  old  days,  before 
the  introduction  of  the  postal  system  and  before  the  modern 
extraordinary  developments  of  the  bill  of  exchange  system,  the 
invoices  had  to  go  out  in  the  carrying  ship,  because  the  consignees 
would  of  course  require  to  know,  for  their  own  purposes,  the 
exact  contents  of  every  package  in  the  shipment  immediately 
on  arrival  of  the  goods  ;  and,  in  addition,  they  would  simultane- 
ously have  to  pass  the  necessary  Customs  entries,  on  the 
particulars  supplied  by  the  invoices.  But,  as  already  explained, 
the  invoices  are  now  sent  by  post  to  arrive  before  the  ship. 
To  make  assurance  doubly  sure,  they  are  commonly  sent 
in  duplicate  by  following  mails  or  by  alternative  postal 
routes ;  practically  they  are  never  on  board  the  ship.  If 
the  ship  herself  be  a  mail  steamer,  then  the  invoices  will  be  in 
the  inviolate  mail  bags.  Even  if  the  bags  could  be  opened, 
seeing  that  the  captain's  information,  if  he  has  any  at  all  on  the 
point,  will  be  only  that  the  goods  are  consigned  to  "  Order  ",  he 
would  have  no  idea  to  whom  the  invoices  would  be  addressed. 
While,  therefore,  it  may  be  true,  and  probably  is  true,  that  in 
the  old  days  it  was  usual  or,  indeed,  necessary  for  the  invoices 
to  "  accompany  the  goods  ",  this  is  so  no  longer. 

Summary  respecting  Cargo  Documents 

There  is  practical  unanimity  amongst  the  text-writers,  who 
for  their  part  are  justified  by  the  reports  of  the  Prize  Court  cases, 
that  the  Manifest  and  Bills  of  Lading  must  certainly  be  on 
board,  and  probably  the  Invoices.  From  our  survey  of  the 
conditions  now  prevailing  it  will  be  seen  that  while  a  more  or 
less  crude  and  uninforming  Manifest  may  or  may  not  be  on 
board,  it  is  most  improbable  that  the  Bills  of  Lading  and  the 
Invoices  will  be  on  board.     We  have  here  in  mind,  of  course, 


246    SUMMARY  RESPECTING  CARGO  DOCUMENTS 

the  case  of  vessels  which  sailed  in  the  ordinary  peace  conditions. 
If,  as  already  observed,  ships  should  sail  in  apprehension  of 
war  and  more  especially  if  they  sailed  with  full  knowledge  that 
war  prevailed,  then  no  doubt  they  would  take  care  to  carry 
a  proper  manifest,  in  case  of  need  vised  b)-  the  Consul  of  the 
country  to  which  they  were  bound,  and  perhaps,  to  be  further 
on  the  safe  side,  shipowners  might  insist  on  being  provided  with 
copies  of  the  shippers'  invoices,  these,  if  necessary,  being  certified 
or  attested  as  "  true  copies  "  by  municipal,  notarial,  or  consular 
signature.  Ships  would  probably  carry  also  certified  "captain's 
copies  "  of  the  bills  of  lading.  As  to  the  bills  of  lading  proper, 
however,  these,  for  the  reasons  given,  it  would  in  most  cases  be 
impossible  for  the  ship  to  have  on  board. 

The  broad  distinction  between  homeward-bound  cargoes  of 
raw  material  and  outward-bound  cargoes  of  industrial  products 
has  already  been  emphasized.  The  description  of  raw  materials  in 
their  copies  of  bills  of  lading  and  manifests,  so  far  as  the  manifests 
may  be  on  the  ship,  are  usually  correct  ;  but  of  course  there  is 
always  the  possibility  that  amongst  such  cargoes  may  be  manu- 
factured goods  or  articles,  of  either  peaceful  or  warlike  use, 
which  have  been  shipped  outwards  to  a  neutral  port,  there  to  be 
re-shipped  for  a  belligerent  destination.  If  of  a  contraband 
nature,  no  doubt  their  appearance  would  be  disguised  and  the 
bill  of  lading  description  framed  accordingly.  In  all  probability 
every  attempt  would  be  made  to  conceal  such  procedure  from 
the  shipowners,  who,  acting  in  the  ordinary  course  of  their  trade 
and  voyage,  are  not  at  all  likely  to  lend  themselves  to  an  irregu- 
larity which  might  have  very  serious  consequences  for  themselves. 
Of  course,  if  they  agree  on  terms  and  with  full  knowledge  to 
carry  a  cargo  wholly  or  in  part  contraband,  this  will  be  another 
matter.  Outward  cargoes,  cargoes  of  industrial  goods,  where 
individual  shipments  are  ambiguously  described,  seem  likely  to 
be  the  chief  cause  of  perplexity  to  boarding  officers.  And,  as 
already  observed,  when  war  is  in  progress  some  of  such  goods 
sent  oversea  may  conceivably  be  shipped  back  again  to  belligerent 
destinations  in  vessels  bringing  raw  materials. 

We  have  till  now  been  considering  the  ship's  papers  required 
for  proofs  as  regards  the  nature  or  description  of  the  Cargo. 


THE   SHIP'S    REGISTER  247 

There  remain  the  papers  required  to  establish  the  identity  of  the 
ship  herself,  and  those  required  to  corroborate  the  captain's 
assertions  as  to  the  voyage  on  which  the  ship  is  engaged.  Each 
State  has  its  own  laws  or  requirements  as  to  the  papers  its  own 
ships  shall  carry,  and  a  reference  to  the  various  national  require- 
ments, of  which  a  list  will  be  found,  for  example,  in  Mr  Atherley- 
Jones's  Commerce  in  War  (1907),  will  show  various  differences. 
Some  of  the  papers  enumerated  seem,  according  to  modern 
requirements,  obsolete  or  superfluous,  more  especially  having 
regard  to  the  other  papers  now  also  carried.  Thus  Belgium  is 
stated  to  require  a  sea-letter.  Brazil,  a  passport.  France,  a 
sailing-license.  Greece,  a  conge  or  passport.  Holland,  a  sea- 
letter  and  sailing-licenses.  Portugal,  a  passport.  Russia,  a  license 
or  commission.  Spain  and  Sweden,  a  passport.  Turkey,  various 
unusual  papers.  All  of  these  are  required  in  addition  to  papers 
now  usual.  The  lists  given  by  different  writers,  however,  are  by  no 
means  necessarily  always  in  strict  agreement,  and  it  seems  quite 
possible  that  some  of  the  papers  on  the  lists  may  be  there  only 
as  survivals.  For  example,  on  the  British  list  appears  the  Muster 
Roll  and  also  the  "  Shipping  Articles  ",  commonly  known  how- 
ever as  the  "  Ship's  Articles  ",  of  which  the  official  title  is  the 
"Agreement  and  Account  of  Crew."  But  apparently  the  modern 
successor  of  the  ancient  Muster  Roll  is  in  fact  the  Ship's  Articles. 
Moreover,  the  Official  Log  contains  a  detailed  list  of  the  crew. 
If  in  the  case  of  any  country  either  a  Certificate  of  Registry  or 
the  Ship's  Articles  is  not  on  the  list,  and  the  list  is  correct  in^ 
such  omission,  then  no  doubt  the  older  form  of  paper  would  still 
be  requisite.  So  long  indeed  as  the  particular  papers  required  be 
such  as  to  prove  the  essential  facts,  their  title  or  exact  wording 
would  seem  to  be  of  secondary  importance. 

The  Ship's  Register 

In  ancient  times,  when  trading  privileges  might  be  conceded 
or  denied — conceded  to  subjects  of  one  prince  and  denied  to 
subjects  of  another — merchants  or  their  shipmasters  entitled  to 
the  benefit  of  such  concessions  must  needs  have  been  prepared 
to  produce  on  demand  evidence  of  their  own  nationality  or  of 


248  TIIK    Sim"S    RKGISTER 

the  owncrshij)  of  the  property  in  their  control.  And  equally 
when  the  general  law  of  the  sea  was  the  law  of  the  strongest,  and 
immunity  from  attack  and  seizure  was  only  to  be  obtained  for 
the  sea-borne  property  of  their  subjects  by  special  treaties 
between  princes,  shipmasters  must  similarly  have  had  to  carry 
with  them  evidence  of  their  nationality.  Into  the  precise  nature 
of  such  ancient  evidences  we  need  not  now  enquire,  whatever 
their  antiquarian  or  historical  interest.  There  seems  to  have 
been  no  common  rule  or  standard,  and  some  duplication  or 
overlapping.  So  early  as  1696,  in  an  Act  for  preventing  frauds, 
&c.,  in  our  Plantation  Trade — i.e.  trade  with  our  Colonies  and 
Plantations  in  Asia,  Africa  and  America — and  for  confining  it 
strictly  to  British  vessels,  it  was  laid  down  that  ships  engaged  in 
the  trade  must  be  registered,  and  a  copy  of  the  Registration  Oath 
was  to  be  delivered  to  the  ship  for  the  security  of  her  navigation. 
This  document  contained,  however,  no  details  of  the  vessel's 
build  or  measurements,  and  seems  rather  to  have  been  intended 
as  proof  for  production  to  British  port  officials  and  to  ships  of 
war  under  the  British  flag.  It  had,  moreover,  no  relation  to 
other  oversea  trades.  In  1786,  however,  by  Act  26  George  III, 
c.  60 — repealed  in  1823  by  "  An  Act  for  the  further  Increase  and 
Encouragement  of  Shipping  and  Navigation",  the  foundation  of 
our  present  Merchant  Shipping  Act — the  1696  provision  was 
extended  to  all  British-owned  decked  vessels,  the  master  to  be 
furnished  with  a  Certificate  of  Registration  which  further  entered 
in  great  detail  into  the  build  and  measurements  of  the  ship.  If  a 
law  in  similar  sense  had  been  adopted  by  other  maritime  States 
it  would  doubtless  have  been  included  or  indeed  prominent  in 
our  Prize  Court  references  to  the  papers  of  ships  which  we  had 
captured.  As  it  was,  the  Court  had  to  deal  with  the  proofs  of 
nationality  deemed  necessary  or  sufficient  by  such  States.  Not- 
withstanding our  Registration  Certificate,  we  for  some  time 
continued  to  ignore  it  in  our  Treaties  with  foreign  States  and  to 
recognise  Passes,  Passports  and  Sea  Letters  as  affording  proofs 
of  the  nationality  of  our  own  ships.  These  papers  may  have 
varied  in  form  with  time  and  circumstances,  and  probably  enough 
the  proofs  carried  under  treaty  requirements  may  have  differed 
from  those  otherwise  in  use. 


THE   SHIP'S    REGISTER  249 

Thus  to  a  treaty  with  the  King  of  Denmark  and  Norway  in 
1670  was  appended  a  form  of  Safe-conduct  Pass  or  Letter  of 
Passport,  and  Certificate,  as  follows : 

Safe-conduct  Pass 

"  Be  it  known  unto  all  and  singular  to  whom  these  Our 

Letters   of  Safe-conduct    shall    be   shewn,   that  Our 

Subject   and  Citizen  of  Our   City   of  hath   humbly 

represented  unto    Us,   that   the   Ship   called  of  the 

Burthen  of Tuns,  doth  belong  unto  them  and  others 

our  Subjects,  and  that  they  are  sole  Owners  and  Proprietors 
thereof,  and  is  now  laden  with  the  Goods  which  are  contained 
in  a  Schedule  which  she  hath  with  her  from  the  Officers  of 
our  Customs  [?  the  '  Manifest '],  and  do  solely,  truly  and 
really  belong  to  Our  Subjects  or  others  in  Neutrality,  bound 

immediately  from  the  Port  of to  such  other  Place  or 

Places,  where  she  may  conveniently  trade  with  the  said 
Goods,  being  not  Prohibited,  nor  belonging  to  either  of  the 
Parties  in    Hostility,  or  else  find   a   Freight ;    Which  the 

foresaid  our   Subject    having  attested   by  a  Writing 

under  his  Hand,  and  Affirmed  to  be  true  by  Oath,  under 
Penalty  of  Confiscation  of  the  said  Goods,  We  have  thought 
fit  to  grant  him  these  Our  Letters  of  Safe-conduct..." 
the  form  then  proceeding  at  some  length  to  pray  and  desire  all 
Governors,  Admirals,  &c.,  "  and  more  especially  the  Parties  now 
in  War  "  to  suffer  the  master  with  his  ship  and  merchandise  to 
pursue  his  voyage  and  to  afford  him  all  offices  of  civility,  as 
a  subject  of  the  King. 

Certifcate 

The  Certificate  was  a  separate  declaration  of  civic  authorities 
that  the  person  referred  to  in  the  passport  had  formally  declared 
to  them  that  the  ship  and  merchandise  belonged  only  to  subjects 
of  his  Majesty  and  carried  no  prohibited  goods  belonging  to 
either  of  the  parties  then  at  war. 

In  the  Treaty  of  1682  between  Great  Britain  and  the 
Barbary  States — "the  Most  Illustrious  Lords,  the  Bashaw,  Dey, 
Aga  and  Governors  of  the  famous  City  and  Kingdom  of  Algiers 


250  THE    SHIP'S    REGISTER 

in  Barbary  " — it  was  provided  that  the  Algiers  ships  of  war 
desiring  to  visit  liritish  merchants'  ships  (note  the  "  merchants' 
ships")  might  send  on  board  "one  single  boat,  with  two  sitters 
onl)'  beside  the  ordinary  crew  of  rowers,  and  that  no  more  shall 
enter  any  such  merchant  ship  or  vessel  without  express  leave 
from  the  commander  thereof,  but  the  two  sitters  alone  ;  and 
that  upon  producing  a  pass  under  the  hand  and  seal  of  the  Lord 
High  Admiral  of  England  and  Ireland,  or  of  the  Lord  High 
Admiral  of  Scotland... the  said  boat  shall  presently  depart  and 
the  merchant  ship  or  vessel  shall  proceed  freely  on  her  voyage." 
The  administration  of  the  affairs  of  the  Admiralty  and 
particularly  that  of  signing  Passes  "  having  been  taken  into 
His  Majesty's  own  Royal  Hand",  the  Pass  was  a  few  years  later 
issued  in  the  following  form  : 

"James  the  Second,  by  the  Graceof  God,  King  of  England, 
Scotland,  France  and  Ireland,  Defender  of  the  Faith,  &c. 

To  all  persons  whom  these  may  concern,  greeting. 

Suffer  the  Ship 

to  pass  with  her  company,  passengers, 
goods  and  merchandizes,  without  any  let,  hindrance,  seizure 
or  molestation  ;  the  said  ship  appearing  unto  us  by  good 
testimony  to  belong  to  our  subjects,  and  to  no  foreigner. 
Given  under  our  Sign  Manual,  and  the  Seal  of  our  Admiralty, 
at    our    Court    at  this  day   of 

in  the  year  of  our  Lord 

JAMES  R. 

By  His  Majesty's  command 

Signed  " 

The  treaty  between  Great  Britain  and  Denmark  of  1801 
provides  for  the  verification  of  the  papers  of  the  ships  of  the 
High  Contracting  Parties  in  the  case  of  vessels  under  convoy, 
and  appends  the  following  : 

"FORMULA  of  the  Passports  and  Sea  Letters  which 
are  to  be  delivered,  in  the  respective  Admiralties  of  the 
States  of  the  two  high  Contracting  Parties,  to  the  ships  and 
vessels,  which  shall  sail  from  them,  conformable  to  Article  IV 
of  the  present  Treaty. 


THE   SHIP'S    REGISTER  251 

Be  it  known  that  we  have  given  leave  and  permission  to 

N ,  of  the  city  or  place  of  N ,  master  and  conductor 

of  the  ship  N ,  belonging  to  N ,  of  the  port  of  N , 

of tons  or  thereabouts,  now  lying  in  the  port  or  harbour 

of  N ,  to  sail  from  thence  to  N ,  laden  with  N ,  on 

account  of  N ,  after  the  said  ship  shall  have  been  visited 

before  its   departure  in  the  usual   manner  by  the  officers 

appointed   for  that   purpose,  and  the  said  N ,  or  such 

other  as  shall  be  vested  with  powers  to  replace  him,  shall  be 
obliged  to  produce  in  every  port  or  harbour  which  he  shall 
enter  with  the  said  vessel  to  the  officers  of  the  place,  the 

present  license,  and  to  carry  the  flag  of  N ,  during  his 

voyage. 

In  faith  of  which,  &c." 

This  form  seems  to  contemplate  the  authorisation  of  a  particular 
vessel,  apart  from  nationality. 

Having  given  three  examples  of  ancient  documents  which  are 
much  more  frequently  mentioned  than  set  forth,  it  may  be  well 
to  add  yet  another,  the 

"License  to  Trade" 

We  find  a  copy  of  this  curious  paper  in   Mr  David   Hannay's 
fascinating  work,  The  Sea  Trader.     It  is  as  follows  : 

"  To  all  commanders  of  His  Majesty's  ships  of  War  and 
Privateers,  and  all  others  whom  it  may  concern,  greeting. 

I,  the  undersigned,  one  of  His  Majesty's  principal 
Secretaries  of  State,  in  pursuance  of  the  authority  given  to 
me  by  His  Majesty's  Order  of  Council  under  and  by  virtue 
of  powers  given  to  His  Majesty  by  an  Act  passed  in  the 
forty-eighth  year  of  His  Majesty's  reign  [here  follows  the 
title  of  the  Act  several  lines  long,  not  necessary  to  be 
repeated]  and  in  pursuance  of  an  Order  of  Council  specially 
authorising  the  grant  of  this  license,  a  duplicate  of  which 
Order  of  Council  is  hereunto  annexed,  do  hereby  grant  this 
license  for  the  purposes  set  forth  in  the  said  Order  of  Council 

to  Messrs of  London,  and  other  merchants,  and  do 

hereby  permit  a  vessel,  bearing  any  flag  (except  the  French) 
and    that  \i.e.  the   French  flag]  subject  to  the  conditions 


252  THE   SHIPS    REGISTER 

hereinafter  expressed,  to  proceed  with  a  cargo  of  grain, 
meal  or  flour  (if  importable  according  to  the  provisions  of 
the  Corn  Laws),  and  bare  stores  from  any  port  of  France^ 
between  Brest  and  Bayonne,  both  inclusive,  to  any  port  of 
the  United  Kingdom  ;  the  Master  to  be  permitted  to  receive 
his  freight,  and  depart  with  his  vessel  and  crew  to  any  port 
not  blockaded,  notwithstanding  all  the  documents  which 
accompany  ship  and  cargo  may  represent  the  same  to  be 
destined  to  any  neutral  or  hostile  port,  and  to  whomsoever 
such  property  may  appear  to  belong ;  provided  that  the 
name  of  the  Vessel  and  the  name  of  the  Master,  and  the 
time  of  clearance  from  her  port  of  lading  shall  be  endorsed 
in  this  license,  that  tlie  vessel  shall  be  permitted  to  bear  the 
French  flag  only  till  she  is  two  leagues  distant  from  her 
foreign  port  of  clearance,  or  the  neighbouring  coast ;  pro- 
vided always  that  this  license  shall  not  be  understood  to 
protect  any  vessel  navigated  by  French  seamen  or  any 
vessel  that  shall  appear  to  be  French  built,  save  and  except 
French  built  vessels,  which  may  have  been  transferred  into 
foreign  possession,  prior  to  the  operation  of  the  order  of  the 
nth  of  November,  1807,  or  which  may  have  been  taken  as 
prizes  from  the  French,  and  shall  not  have  returned  again 
into  French  possession." 
It  will  be  noticed  that  the  license  directly  implies  the  use  of 
false  papers.  Mr  Hannay  states  that  about  the  year  1807  the  use 
of  such  licenses  rose  in  three  years  from  1600  to  over  18,000. 
Moreover,  false  licenses  and  false  papers  generally  were  fabricated 
wholesale,  quite  an  industry  in  itself 

An  Agreement  between  the  British  and  Portuguese  Commis- 
sioners signed  in  181 2  affirms  the  use  and  evidence  of  our  British 
Certificate  of  Registry,  as  follows  : 

"  The  Identification  of  British  Ships 

It  is  agreed  that  the  ofl'icial  certificate  of  registry,  signed 
by  the  proper  officer  of  the  British  Customs,  shall  be  deemed 
sufficient  to  identify  a  British-built  ship ;  and  that  on  the 
production  of  such  certificate  she  shall  be  admitted  as  such 
in  any  one  of  the  ports  within  the  Dominions  of  His  Royal 
Highness  the  Prince  Regent  of  Portugal." 


THE   SHIP'S    REGISTER  253 

The  Agreement  then  goes  on  to  provide  for  the  verification 
of  British  merchandise.  All  goods  were  to  be  accompanied  by 
the  original  cockets  signed  and  sealed  by  the  Customs  at  the  port 
of  shipping,  numbered  in  sequence,  fastened  together  and  sealed 
with  the  official  seal,  the  whole  of  them,  "together  with  the  Manifest 
sworn  to  by  the  captain,"  to  be  certified  by  the  Portuguese  Consul 
and  "returned  to  the  searcher" — i.e.  the  Customs  officer — "in 
order  to  the  final  clearance  of  the  ship."  (The  quotation  is 
incidentally  of  interest  in  its  reference  to  the  Manifest,  especially 
if  it  is  to  be  concluded  that  the  ordinary  rule  was  that  the 
carrying  of  this  document  was  then  obligatory  or  customary.) 

Like  the  enactment  of  1734  which  first  limited  the  liability 
of  shipowners,  the  first  law  requiring  the  registration  of  ships 
passed  through  a  gradual  process  of  evolution,  with  the  result 
that  the  requirements  of  the  law  to-day  are  minute  and  searching. 
And  the  laws  of  other  countries  seem  now  more  or  less  closely 
to  follow  the  example  set  by  us.  The  Registry  of  British 
Shipping  kept  by  the  Board  of  Trade  has,  of  course — it  may  be 
well  to  state  the  fact  again — nothing  whatever  to  do  with 
"  Lloyd's  Register  of  British  and  Foreign  Shipping "  already 
described  (p.   121). 

A  Ship's  Certificate  of  British  Registry  is  a  parchment 
declaration  of  the  entries  in  the  Register.  It  is  headed,  beneath 
its  title,  "  Particulars  of  Ship  ",  the  first  item  of  these  being  the 
ship's  0.fficial  Number.  The  official  custom  is  or  has  been  to 
issue  to  local  or  oversea  Registration  Offices  a  sequence  of 
numbers  for  allocation  till  exhausted,  so  that  it  will  not  always 
follow  that  the  official  numbers  shown  in  Lloyd's  Register  will 
be  in  strict  sequence  with  date  of  registration.  When  a  vessel 
has  once  had  her  official  number  allotted  to  her  it  is  irrevocably 
hers  and  hers  only.  If  she  be  lost,  "  sold  foreign  "  or  broken  up, 
her  number  perishes  with  her  removal  from  the  Register  and 
will  never  be  used  again.  If,  however,  the  vessel,  having  passed 
into  foreign  possession,  should  ever  revert  to  British  ownership, 
then  she  will  go  back  under  her  old  number.  This  number  will, 
on  its  allocation  to  her,  be  cut  into  her  main  beam,  usually  on 
the  fore  part  of  her  main  hatch,  together  with  her  registered 
tonnage.     The  official  number  is  followed  on  the  Certificate  by 


254  THE    SHIP'S    REGISTER 

the  ship's  name  and  port  of  rej^istry,  place  and  date  of  her  building 
and  name  and  address  of  the  builders.  Her  internal  construction 
is  then  minutely  tabulated,  and  her  various  measurements  are 
recorded.  A  description  of  her  engines  follows,  with  the  builder's 
name  and  address  and  the  vessel's  speed.  Then  her  various 
toimage  measurements  and,  finally,  the  name,  residence  and 
occupation  of  the  owner  or  owners  and  the  shares  held  by  each. 
Alterations  in  ownership,  name  of  master,  &c.,  must  be  officially 
recorded  on  the  Certificate.  In  the  event  of  loss  or  sale  of  the 
vessel  the  owners  must  at  once  notify  the  authorities,  to  whom, 
also,  the  Certificate  must  be  yielded  up. 

With  particulars  and  description  so  minute  as  those  defined 
at  length  in  the  Merchant  Shipping  Act,  there  can  be  no  difficulty 
whatever  in  identifying  the  vessel  with  her  Certificate.  If  the 
Certificate  be  forged  it  will,  of  course,  have  still  to  agree  with  the 
facts  of  the  vessel.  If,  indeed,  forgery  should  be  resorted  to,  it 
is  to  be  presumed  that  what  we  may  term  the  physical  descrip- 
tion of  the  ship  will  be  correct,  the  vessel's  name,  signal  letters 
and  ownership  being  the  chief  things  falsified.  In  such  case  the 
name  of  the  vessel  on  bow  or  stern,  on  boats  and  life-buoys,  &c., 
will  have  been  painted  out,  not,  perhaps,  an  easy  thing  to  do 
without  leaving  trace  of  some  sort.  In  these  days,  however,  of 
Shipping  Registers  and  Sailing  Lists,  a  comparison  with  which 
would  at  once  cause  suspicion  and  enquiry,  it  may  be  doubted 
whether  such  falsification  will  often  be  attempted.  The  conditions 
in  which  false  ship-papers  might  be  used  with  success,  and  no  less 
the  occasions  for  disguise,  have  largely  passed  away.  With  no 
telegraphs  and  practically  no  postal  service,  a  story  could  formerly 
have  been  concocted  which  under  the  fierce  light  which  illumines 
modern  shipping  intelligence  could  hardly  be  attempted.  With 
news-facilities  as  they  are  to-day,  the  movements  of  a  ship  are, 
by  comparison  with  former  times,  almost  as  observable  as  those 
of  a  gold-fish  in  a  glass  bowl.  Moreover,  the  old  navigation 
laws,  and  laws  as  regards  Privileged  (in  a  great  degree)  and 
Licensed  Trades,  practically  no  longer  exist  as  motives  for 
misrepresenting  ownership.  Falsification  as  regards  voyage  and 
as  regards  cargo  seems  more  probable. 

If  in  any  case  the  ownership  of  the  vessel  has  recently  been 


THE    NATIONAL   FLAG  255 

transferred,  the  Bill  of  Sale  must  be  on  board.  And  if  the 
correspondence,  which  should  be  called  for,  is  also  on  board,  it 
should  be  examined  in  order  to  make  sure  that  the  transfer  is 
bona  fide  and  complete.  Even  if  bona  fide  and  complete,  the  date 
or  circumstances  of  the  transfer  may  still  leave  its  propriety  or 
permissibility  in  question.  The  purchasers  should  apparently 
have  obtained  from  their  Consul  at  the  port  of  transfer  a  Pro- 
visional Certificate  of  Nationality ;  but  there  seems  to  be  no 
definite  understanding  to  this  effect. 

The  particulars  of  our  own  Certificate  of  Registry  have  been 
given  for  purposes  of  general  illustration.  There  is  no  law  as  to 
the  data  which  similar  Certificates  should  supply;  and  it  is  open 
to  every  State  to  frame  its  own  laws  or  regulations  on  the  subject. 
But  probably  the  standard  which  we  have  set  is  now  more  or 
less  closely  adopted  generally.  The  American  requirements  are 
at  least  as  stringent  as  ours  :  indeed,  the  laws  of  the  United  States 
as  regards  shipping,  and  their  distinctions  between  Domestic  and 
Foreign  Trade,  call  for  even  further  particulars.  German  ships, 
again,  have  to  be  provided  with  a  Registration  Certificate,  con- 
taining all  the  data  necessary  for  identification,  and,  in  addition, 
apparently,  a  Bill  or  Certificate  of  the  gross  and  net  tonnage  and 
the  equivalent  in  British  registered  tons.  But,  in  fact,  it  does 
not  seem  to  matter  what  is  the  precise  form  or  what  are  the 
exact  contents  of  a  Registration  Certificate  so  long  as  it  serves 
to  establish,  without  room  for  reasonable  doubt,  the  identity  of 
the  vessel  to  which  it  relates. 

The  National  Flag 

The  national  flag  must  not  be  used  by  an  alien  ship,  under 
penalty  of  detention — its  use  to  avoid  hostile  capture  only 
excepted.  The  penalty  of  confiscation  attends  the  use  of  false 
papers  by  a  British  captain  with  the  object  of  concealing  his  ship's 
nationality  from  any  person  entitled  by  British  law  to  enquire  into 
the  same.  British  vessels  must  show  their  colours  on  signal  from 
a  British  war-ship ;  on  entering  and  leaving  any  foreign  port  ; 
and,  if  of  50  tons  and  upwards,  on  entering  and  leaving  any  British 
port.  A  British  vessel  entering  a  British  port  under  the  foreign 
flag  may  be  struck  off  the  national  Register. 


256  THE   SHIP'S    ARTICLES 

The  Ship's  Articles 

Our  own  official  title  for  what  arc  now  conventionally  known 
as  the  "  Ship's  Articles  ",  but  which  apparently  used  to  be  known 
as  the"  Muster  Roll  ",  is  the  "  Agreement  and  Account  of  Crew." 
It  is  a  large  printed  document  of  many  numbered  pages.  The 
ship's  name  is  filled  in  at  the  top,  with  her  official  number, 
port  of  registry,  tonnage  and  horse-power.  Then  follows  a 
description  of  the  voyage.  On  the  second  page  is  shown  the 
Scale  of  Provisions  and  the  Bill  of  Fare — breakfast,  dinner  and 
supper.  On  the  next  page  is  a  statement  of  the  vessel's  load- 
line,  the  regulations  for  maintaining  discipline,  and  names  and 
description  of  any  apprentices.  Then  a  number  of  pages  are 
ruled  for  particulars  of  the  crew,  each  of  whom  has  to  sign  his 
name  and  state  his  age,  nationality,  address,  agreed  wages 
and  so  forth.  These  Articles  have  to  be  read  over  to  the  crew 
before  the  local  Marine  Superintendent,  and  signed  by  them  as 
well  as  by  the  Captain  and  witnessed  by  the  Superintendent, 
with  whom  a  copy  has  to  be  deposited.  The  Articles  are,  of 
course,  kept  amongst  the  ship's  papers:  but  a  copy,  in  condensed 
form,  has  to  be  affixed  on  board  where  the  crew  can  read  it. 
Some  foreign  States  require  the  Articles  to  be  vis^d  by  their 
Consul  at  the  sailing  port. 

The  United  States  Articles  closely  resemble  our  own  ;  indeed, 
they  are  more  detailed.  The  German  Mustcr-Rolle  similarly 
requires  all  the  members  of  the  crew  to  be  "  signed  on  "  at  a 
Mercantile  Marine  Office,  though  this  process  may  be  separate 
and  not,  as  with  us,  simultaneous  and  collective.  As  with  us, 
a  copy  of  the  Muster-Rolle,  so  far  as  it  relates  to  the  engagement 
of  the  crew,  must  be  exposed  on  board.  An  excellent  translation 
of  the  German  Maritime  Code  which  came  into  force  ist  January, 
1900,  has  been  published  by  W.  Arnold  (Effingham  Wilson). 
There  appears  to  be  in  it  no  reference  to  Clearance  or  Bill  of 
Health,  or  to  any  necessity  for  carrying  manifest  or  bills  of  lading ; 
and  there  is  some  obscurity  as  to  what  really  is  the  German  law  in 
respect  of  these  papers,  if  indeed  any  such  law  be  declared  at  all. 
It  is,  however,  declared  that  shippers  may  require  as  many  bills  of 
lading  to  the  set  as  they  please,  and  that  the  master  is  on  his  part 


THE   LOG  257 

entitled  to  demand  a  copy  signed  by  the  shipper.  But  a 
German  vessel,  like  any  other,  would  certainly  carry  any  papers 
which  would  have  actually  to  be  on  board  to  satisfy  the  require- 
ments of  the  port  of  destination  ;  and,  also  like  any  other,  ought 
to  have  on  board  the  papers  which  in  the  event  of  war  a 
belligerent  officer  would  be  entitled  to  call  for.  It  may  here  be 
mentioned  that  every  seaman  on  a  German  vessel  has  to  be 
provided  with  a  *'  Sea  Voyage  Book ",  a  sort  of  amplified 
provision  for  a  discharge-and-conduct  certificate.  It  also  sets 
forth  his  military  obligations,  and  is  declared,  in  effect,  to  be  a 
sea-passport.  During  the  voyage  these  books  are  in  the  keeping 
of  the  captain. 

Professor  Holland  in  his  Manual  has  the  following  list  of  the 
German  papers  ;  Mr  Atherley-Jones  has  practically  the  same  list : 

Certificate  of  Nationality. 

Provisional  Certificate  of  Nationality. 

Certificate  of  Measurement. 

Provisional  Certificate  of  Measurement. 

List  of  Crew. 

Log-book. 

Manifest. 

Bills  of  Lading. 

Charterparty,  if  the  vessel  is  Chartered. 
The  present  author  would,  however,  himself  incline  to  begin  the 
list  thus,  with  considerable  doubt  as  to  how  it  should  be  finished  : 

Certificate  of  Registry. 

Certificate  of  Tonnage,  gross  and  net,  and  its  British 
equivalent. 

Ship's  Articles. 

Sea- Voyage  Books  (of  Crew). 

Log. 

?  Certificates  of  Competency  (Officers). 

The  Log 

A  British  vessel  on  completing  her  outward  clearance  for- 
malities is  supplied  with  an  Official  Log,  to  be  posted  up  as  may 
be  required  during  the  voyage  and  returned  to  the  authorities  on 

o.  17 


2  58  TIIK    LOG 

completion  of  the  voyage.  The  log  is  in  book  form,  printed  in 
few  pages  or  in  many  according  to  the  number  of  the  crew. 
The  Merchant  Shipping  Act  provides  that  an  oflficial  log  "  shall 
be  kept  in"  every  ship,  certain  local  traders  excepted.  It  may 
be  kept  either  distinct  from  or  united  with  the  ordinary  Ship's 
Log.  In  practice  it  is  ordinarily  a  separate  book.  It  has  the 
usual  official  blue  paper  cover,  on  which  is  an  index  of  the  laws 
or  regulations,  thirty  in  number,  printed  in  it.  The  official  log 
is,  in  fact,  in  an  important  degree  a  means  of  supplying  captains 
with  certain  necessary  information,  both  as  nautical  instruction 
and  to  enable  them  to  know  and  comply  with  certain  shipping 
laws.  There  are  twenty-eight  pages  of  such  information.  At 
the  beginning  of  the  log  proper  are  spaces  for  the  ship's  name 
and  number  and  so  forth  and  for  description  of  the  voyage. 
Then  follows  a  printed  schedule  of  the  information  which  it  is 
the  captain's  duty  to  record — largely  personal,  relating  to  the 
crew — collisions,  loadline,  boat-drill  and  so  on.  Special  provision 
is  made  for  recording  callings,  arrivals,  departures,  free-board  and 
draught.  Spaces  are  provided  for  name,  duty,  &c.,  of  each 
member  of  the  crew,  which,  apparently,  should  therefore  more 
or  less  coincide  with  the  list  in  the  ship's  Articles.  The  log 
is  purely  for  official  purposes,  and  largely  for  chronicling  the 
history  and  character  of  each  member  of  the  crew.  It  is  not 
intended  for  a  record  of  the  ordinar}'-  or  day  by  day  incidents  of 
the  navigation  of  the  ship.     It  is  the  Official  Log. 

The  "  Ship's  Log  "  is  a  different  thing.  This  is  the  log  known 
to  merchants  and  underwriters,  who  ordinarily  take  no  interest 
in  the  Official  Log  and  perhaps  may  never  even  have  heard  of 
it.  Of  the  Ship's  Log  they  know  well  as  being  the  captain's 
chronicle  of  the  events  of  the  voyage — wind  and  weather,  special 
orders  given,  damages  sustained,  distance  run,  attention  to  the 
pumps,  and  so  on.  This  is  the  Ship's  Log :  or,  if  the  vessel  be 
a  steamship,  the  Deck  Log  or  Captain's  Log. 

The  Engine-room  Log,  on  steamships,  is  kept  independently 
of  the  Deck  or  Captain's  Log.  In  the  Engine-room  Log  or 
Engineer's  Log  are  recorded  the  daily  records  of  the  engine-room 
work,  the  revolutions,  coal  consumption,  orders  from  the  bridge, 
accidents  to  engines,  and  so  on.     Then  if  the  vessel  be  carrying 


CERTIFICATES    OF   SHIPS'   OFFICERS         259 

a  refrigerated  cargo  there  will  ordinarily  be  yet  another  log,  the 
Refrigerating  Engineer's  Log,  kept  as  a  record  of  temperatures  in 
the  insulated  cargo  space,  from  the  time  when  the  temperature 
is  reduced  for  reception  of  cargo  until  the  cargo  is  all  out. 

It  will  be  seen,  then,  that  the  statement  that  "  The  Log  "  is  one 
of  the  ship's  papers,  a  statement  originating  in  the  days  when 
only  one  log  was  carried,  is  somewhat  crude  by  the  light  of  the 
facts  of  present  times.  A  boarding  officer  nowadays  will  probably 
ask  to  be  shown  "  the  Logs,"  and  will  satisfy  himself  that  they 
agree. 

The  above  is  the  position  as  regards  British  vessels.  As 
regards  the  laws  or  rules  of  other  States,  or  the  practice  on  board 
ships  of  other  States,  they  may  or  may  not  closely  agree  with 
ours,  but  every  captain  must  be  expected  to  carry  a  log  and  to 
keep  it  regularly  posted.  Presumably  also  in  steamships  of  any 
considerable  tonnage  an  Engine-room  Log  will  also  be  kept. 
The  Log  for  German  vessels — the  Schijfs-Tagebuch — is  a 
requirement  of  the  law,  the  Ship's  Log  and  the  Official  Log 
being  one  and  the  same.  The  law  also  requires  the  keeping  of 
an  Engine-room  Log. 

Certificates  of  Ships'  Officers 

In  the  old  days,  no  certificate  of  competency  was  required  by 
ships'  officers.  All  that  was  required  of  them  in  this  country  was 
that  they  should  be  British  subjects  and  that  they  should  take 
an  Oath  of  Allegiance.  In  1850,  by  British  Law,  for  the  first 
time,  ships'  officers  were  required  to  qualify  by  examination  and 
to  be  provided,  on  so  proving  their  qualification,  with  a  Certificate 
of  Competency.  Naturally,  such  Certificates  are  not  mentioned  by 
the  text-writers,  since  the  ancient  Prize  Court  judgments  make, 
and  could  make,  no  reference  to  them.  But  have  not  the  1 850  law 
and  the  general  or  universal  adoption  of  its  principles  introduced, 
in  fact,  a  new  ship's  paper }  Assuming,  as  it  is  reasonable  to 
assume,  that  all  the  principal  maritime  States  now  similarly  re- 
quire the  officers  of  their  nation's  registered  vessels  to  be  qualified 
and  certificated,  apparently  every  ship's  ofllicer  must  be  provided 
with  a  certificate  of  the  State  to  enable  him  to  hold  office  on  any 

17 — 2 


26o        CERTIFICATES    OF   SHIPS'   OFFICERS 

vessel  rcp^istered  by  such  State.  If  this  be  so,  then  the  officers' 
certificates,  if  produced,  will  of  themselves  serve  to  establish  the 
nationality  of  the  ship  on  which  they  are  serving.  Their  certifi- 
cates will,  perhaps,  until  so  determined  by  Prize  Court  decision, 
not  be  a  necessary  and  indispensable  part  of  the  ship's  papers  ; 
but  their  {iroduction  will  afford  valuable  evidence  or  corroboration, 
and  their  non-production  may  well  create  suspicion.  The 
captain  certainly  should  be  able  to  produce  his  own  certificate, 
and  if  he  has  not  his  officers'  certificates  amongst  the  ship's 
papers  the  officers  should  themselves  be  able  to  produce  them 
on  demand.  So,  at  least,  it  seems  reasonable  to  suppose.  In 
our  own  case  the  master  has  to  produce  the  certificates  of 
competency  of  the  master,  mates  and  engineers  on  the  signing 
of  the  Ship's  Articles,  the  Marine  Superintendent  giving  him  a 
certificate  that  he  has  done  so.  This  certificate  he  has  to  produce 
to  the  Customs  before  sailing.  It  is  the  usual  practice  for  the 
master  to  retain  possession  of  his  officers'  certificates  of  com- 
petency until  the  termination  of  the  voyage.  So  far  as  known 
to  the  writer,  these  documents  have  never  yet  found  mention 
in  the  text-writers'  lists  of  ships'  papers,  but  it  seems  at  least 
as  reasonable  to  include  them  as  papers  which,  though  ordinarily 
enumerated  by  such  writers,  may  now  be  regarded  as  obsolete. 

"  Corroborative  "  Papers 

In  view  of  the  important  changes  which  have  taken  place  in 
the  laws  of  shipping  and  the  conditions  and  usages  of  ocean 
trade  since  the  days  of  the  old  Prize  Court  decisions,  one  must 
needs  hesitate  to  define  the  law  for  ships'  papers  of  to-day. 
However,  in  one  essential  particular  at  all  events  we  seem  to  be 
on  firm  ground.  The  modern  elaborately-detailed  Certificate  of 
Registry,  the  official  Ship's  Articles  and  the  official  Log  must 
surely  be  regarded  as  proofs  of  nationality  and  voyage  which 
every  ocean-going  ship  must  be  prepared  to  produce  on  lawful 
belligerent  demand.  And  these  papers  should  be  proofs  as  regards 
nationality  and  (up  to  a  point)  of  voyage,  the  proofs  as  regards 
cargo  resting  on  testimony  to  be  supplied  under  other  heads. 
Forgery  or  falsification  is,  however,  always  a  possibility  to  be 


"CORROBORATIVE"    PAPERS  261 

reckoned  with  ;  and  it  may  be,  in  a  particular  case,  that  the 
form  or  completeness  of  one  or  other  of  the  before-mentioned 
requisite  papers  may  point  to  the  necessity  for  further  proofs. 
And  if  no  occasion  or  desire  for  concealment  should  exist,  these 
further  proofs  should  be  forthcoming  and  should  be  satisfactory. 
Should  they,  however,  for  no  sufficient  reason,  not  be  forth- 
coming, or  should  they  themselves  be  unsatisfactory,  it  will  be 
for  the  boarding  officer  to  decide,  on  the  facts,  whether  to  allow 
the  vessel  to  proceed  or  to  send  her  in  for  further  examination. 

Professor  Holland's  Manual  of  Naval  Prize  Law  (1888) 
may  here  be  usefully  referred  to.  "  If  the  visiting  officer  is 
satisfied  that  the  vessel  is  engaged  in  lawful  commerce,  no  mere 
defects,  irregularities  or  inconsistencies  in  her  papers  will  justify 
detention."  But  if  the  officer  is  troubled  with  doubts,  then  any 
inconsistency  between  the  papers  themselves  or  between  papers 
and  the  statements  of  the  master  must  necessarily  weigh  with 
him. 

It  may  be  that  some  one  or  other  of  the  papers  here  regarded 
as  merely  corroborative  may  in  the  future  be  held  to  be,  in  fact, 
essential.  It  is,  however,  submitted  that  if  what  we  may  term 
the  three  primary  papers  be  produced  and  be  found  in  order,  and 
if  the  captain  can  give  a  satisfactory  reason  for  any  deficiency  as 
regards  what  we  may  term  the  corroborative  papers  (if  it  should 
be  necessary  to  call  for  them),  the  fact  of  such  deficiency  will  not 
of  itself  be  justification  for  sending  the  ship  in.  But  the  proofs  of 
nationality  and  voyage  may  be  regular  and  complete,  and  those 
relating  to  the  cargo  may  be  defective.  Such  defectiveness  might 
in  itself  be  sufficient  to  warrant  capture  for  adjudication,  but  if 
in  addition  the  corroborative  evidences  should  be  wanting, 
defective  or  suspicious,  then  the  case  against  the  ship  would  be 
so  much  the  stronger.  The  corroborative  papers  would  seem 
to  be : 

Clearance. 

Bill  of  Health  or  Health  Certificate. 

Chart. 

Charterparty. 

Captain's  Instructions. 

Passenger  List. 


262  ••CORROBORATIVE"    PAPERS 

Under  modern  postal  conditions  further  corroboration  may 
be  afforded  by  Postal  Correspondence,  over  and  above  letters 
conveyinjT  the  owners'  instructions  to  their  captain,  though  the 
proposition  is  of  course  not  advanced  that  personal  papers  of 
either  officers  or  crew  come  within  the  definition  of  "Ship's 
papers."     To  this  subject  we  will  return. 

Let  us  now  take  these  corroborative  papers,  as  we  here  term 
them,  in  order. 

Clearance 

Probably  every  State  grants  a  Clearance  of  some  sort  as 
official  testimony  that  the  vessel  has  fulfilled  the  Customs'  re- 
quirements as  regards  formalities  and  payment  of  dues.  Con- 
ceivably, however,  the  clearance  might  be  by  some  form  of  entry 
in  the  official  books,  together  with  the  issue  of  a  notice  to  the 
port  officials.  It  cannot  be  affirmed,  however  probable  it  may 
be,  that  the  law  or  practice  of  every  State  requires  delivery  of 
a  clearance  paper  to  all  out-going  ships.  The  fact,  indeed,  is  not 
without  significance  that  the  text-writers'  lists  of  papers  in  the 
case  of  most  of  the  States  make  no  reference  to  the  Clearance. 
In  our  own  case  the  procedure,  briefly,  is  as  follows : 

On  applying  for  clearance  the  captain  has  in  practice  to 
exhibit  the  Ship's  Articles,  signed  by  the  Marine  Superintendent, 
his  Certificate  of  Registry,  his  receipt  or  receipts  for  dues,  what- 
ever at  this  or  that  port  they  may  be,  and  any  other  papers 
required,  and  notably  his  Victualling  Bill — an  official  printed  list 
of  dutiable  stores  on  which  he  has  to  indicate  the  dutiable  or, 
rather,  bonded  stores  which  he  requires  for  his  voyage.  The 
Bill  and  the  stores  described  in  it  having  been  approved  and 
signed  or  "  cleared  ",  the  Customs  clip  on  to  it  a  grey  card  headed 
"  Clearance  Label."     The  card  is  as  follows  : 

(Seal) 

Clearance  Label. 

Number  of  Certificates  {numbers  in  figures). 
Ship  {name  of  skip). 
Master  {name  of  fnaster). 


"CORROBORATIVE"  PAPERS  263 

Date  of  Clearance. 

Signatures  of  collector  or"! 
other  proper  officers  of  I 
Customs.  J 

If  the  vessel  is  bound  to  a  foreign  port,  then  the  captain  will 
probably  need  to  get  his  Clearance  vised  or  attested  by  the 
Consul  of  the  State  to  which  his  ship  is  bound,  otherwise  he  may 
incur  a  fine  or  get  into  difficulties  at  his  destination.  This  circum- 
stance points,  indeed,  strongly  to  the  probability  that  a  captain 
must  at  every  port  be  able  to  obtain  a  form  or  certificate  of 
Clearance  at  any  rate  on  application,  even  if  the  Customs  laws 
may  possibly  not  require  him  to  provide  himself  with  it.  From 
all  of  which  it  follows  that  a  captain  would  almost  certainly  sail 
with  a  Clearance,  and  that  he  would  have  it  amongst  his  papers. 
And  if  the  nationality  of  his  arrival  port  be  different  from  that  of 
his  sailing  port,  his  Clearance  will  presumably  bear  the  vise  oi  the 
Consul  of  the  State  of  his  arrival  port. 

With  his  Clearance  the  captain  when  homeward  bound  might 
have,  and  in  old  times  no  doubt  always  did  have,  his  receipts  for 
port  dues,  light  dues,  pilotage  dues  or  whatever,  at  this  or  that 
port,  they  might  be.  Nowadays,  when  not  at  his  home  port,  very 
probably  the  ship's  agents  or  loading  brokers  will  post  them, 
with  other  cash  vouchers,  direct  to  the  owners. 

Bill  of  Health 

The  Bill  of  Health  or  Health  Certificate  is  a  survival — a  sur- 
vival from  the  days  when  the  latest  news  from  any  port  was 
probably  that  brought  by  the  ship  carrying  the  Health  Certificate. 
The  introduction  of  the  ocean  mail  service  and  still  more  of  the 
submarine  cable  have  made  it  an  anachronism  and,  practically, 
an  absurdity.  If  nowadays  cholera,  yellow  fever  or  plague 
breaks  out  at  any  port  in  the  world,  we  read  of  the  fact  next  day 
at  breakfast.  Consular  advices  will  also  be  immediately  posted 
or  cabled  home,  and  in  case  of  need  the  authorities  will  at  once 
send  special  notice  to  the  Health  Officers  at  the  ports.  As  a 
matter  of  fact  we  ourselves  accept  the  altered  conditions  and  have 
practically  ceased  to  trouble  ourselves  about  Health  Certificates, 


264  "CORROBORATIVE"   PAPERS 

The  Health  Officer  at  this  or  that  port  may  ask  for  them,  but  if 
they  are  not  on  board,  nothing  happens.  We  regard  it  as  more 
important  to  enquire  whether  any  case  of  sickness  or  death  has 
occurred  on  board  during  the  voyage.  None  the  less,  in  deference 
to  ancient  tradition, — and,  perhaps,  in  view  of  requirements  at  a 
possible  port  of  distress — captains  often  if  not  commonly  bring 
with  them  from  overseas  to  British  ports  the  ancient  document — 
ancient,  but  still,  with  many  or  most  States,  none  the  less  real 
and  modern.  Whether  from  ancient  usage,  or  because  their 
postal  or  cabled  news  is  less  regular  than  our  own  ;  or — not 
impossibly — because  the  Consular  vise  demands  a  fee,  and  these 
fees  help  to  pay  the  remuneration  of  the  Consul  ;  the  fact  remains 
that  many  if  not  most  or  all  foreign  States  are  still  as  strict  in 
requiring  Health  Certificates  as  in  the  past.  Even  short-voyage 
steamers  have  to  carry  them.  So  that  in  most  cases  a  foreign- 
going  ocean  ship's  papers  will  include  a  Health  Certificate  with 
Consular  vis^.  And  if  the  certificate  be  genuine,  it  will  cor- 
roborate the  other  documentary  evidences  of  sailing  port. 

Chart 

All  ocean  vessels  must  for  their  own  navigation  purposes 
carry  a  chart,  and  the  captain  will  mark  the  ship's  position  on  it 
day  by  day.  The  chart  would  therefore  presumably  be  evidence 
of  the  port  of  departure.  To  what  extent  it  would  be  evidence 
of  port  of  destination  is  another  question.  If  deception  were  in- 
tended, doubtless  the  ship's  real  destination  would  be  close  to  or 
past  that  for  which  she  was  professedly  steering.  If  the  course 
she  was  steering  when  visited  or  sighted  was  not  that  indicated 
by  the  chart  or  set  forth  in  the  other  papers,  the  fact  would 
naturallycast  suspicion  on  the  genuineness  or  veracity  of  the  latter. 
According  to  Article  35  of  the  (not  yet  ratified)  Declaration  of 
London,  the  ship's  papers  are  conclusive  proof  both  as  to  the 
voyage  on  which  the  vessel  is  engaged  and  as  to  the  port  of 
discharge  of  the  goods,  "  unless  she  is  found  clearly  out  of  the 
course  indicated  by  her  papers,  and  unable  to  give  adequate 
reasons  to  justify  such  deviation."  None  the  less  a  ship  might 
intend  to  sail  to  a  destination  beyond  that  shown  by  her  papers. 


"CORROBORATIVE"  PAPERS  265 

Charterparty 
There  is  general  agreement,  no  doubt  rightly  enough,  amongst 
the  text-writers,  that  if  the  ship  is  under  charter  the  charterparty 
— the  "charter" — must  be  or  ought  to  be  on  board.  It  is 
difficult  to  understand  how,  by  the  light  of  modern  business 
methods,  so  important  a  document  should  ever  have  been  sent 
to  sea  with  the  ship  :  but  it  may,  of  course,  in  the  old  days  have 
been  signed,  as  regards  the  shipowner's  part,  in  duplicate,  or  an 
attested  "  true  copy "  may  either  have  been  preserved  by  the 
shipowners  or  handed  to  the  captain.  If  the  ship  sailed  from 
her  home  port  under  charter  there  would  at  any  rate  have  been 
no  difficulty  about  this,  and  if  she  was  at  some  other  port  when 
chartered  the  captain  could  only  have  received  his  instructions 
by  letter,  and  the  charter  could  of  course  have  been  enclosed. 
Therefore  it  would  in  those  days  have  been  reasonable  enough  to 
require  that  if  a  ship  was  under  charter  a  form  of  the  charterparty 
should  always  be  carried  as  one  of  the  ship's  papers.  And  now- 
adays a  ship  sailing  from  or  near  by  the  country  of  her  ownership 
would  no  doubt  be  similarly  provided.  But,  as  has  already  been 
explained  (p,  91),  in  a  vast  number  of  cases  the  captain,  at 
a  distant  part  of  the  world,  learns  of  his  charter  only  by  cable- 
gram, and  may  have  sailed  with  a  view  to  execution  of  it  before 
written  advices  could  possibly  reach  him.  He  could  not  have 
the  charterparty  or  a  copy  of  it  on  board.  He  would,  however, 
probably  have  on  board  his  owners'  cablegram,  or  written 
instructions  from  their  local  agents,  founded  on  a  cablegram 
received  by  themselves.  He  could  know  the  terms  of  the 
charter,  so  far  as  material  to  him,  without  having  a  copy  of 
the  actual  signed  document,  for  the  different  trades  have 
mostly  their  stereotyped  form  and  he  or  the  ship's  agents 
might  be  equipped  with  these,  and  the  owners'  cablegram  could 
indicate  the  form  and  any  variations  from  it.  On  arrival  at  the 
port  of  loading  the  charter  might  or  might  not  reach  him  before 
sailing  with  his  cargo,  but  in  any  event  it  is  difficult  to  see  how, 
when  his  cargo  was  once  on  board  and  bills  of  lading  had  been 
given  for  it,  it  would  matter  whether  the  cargo  had  been  shipped 
under  charter  or  not.  The  bill  of  lading  destination  will  in  such 
case  ordinarily  be  "  as  ordered," 


266  "CORROHORATIVE"   PAPERS 

Captain  s  Instructions 

It  was  an  old  fashion  to  give  the  captain  written  instructions, 
but  one  which  is  now  by  no  means  always  followed.  Certain 
of  the  text-writers  include  them  amongst  the  ship's  papers  ; 
and  if  a  captain  is,  in  fact,  in  possession  of  instructions  relating 
to  the  particular  voyage — as  distinguished  from  standing  orders 
for  his  general  guidance — then  they  would  no  doubt  be  rightly  so 
included.  But  a  captain  running  regularly  in  a  fixed  trade 
would  need  no  special  instructions  ;  and  it  might  perhaps  happen 
that  if  sailing  from  his  home  port  he  might  receive  his  instruc- 
tions from  the  owners  personally  and  not  in  writing.  Still,  one 
would  expect  to  find  instructions,  more  especially  on  a  tramp 
steamer.  Something  of  this  kind — "  You  will  proceed  to  Buenos 
Ayres  and  there  take  your  instructions  from  Messrs  Brown, 
Jones  and  Co.,  the  ship's  agents.  Failing  other  instructions,  you 
will  proceed  to  Calcutta  in  ballast  and  there  take  the  instructions 
of  Messrs  So  and  So," — or  quite  probably,  moreover,  a  captain 
sailing  from  port  to  port  under  charter  would,  with  the  present- 
day  postal  facilities,  receive  from  time  to  time,  by  post,  written 
instructions  from  his  owners,  and  such  instructions  would  doubt- 
less afford  corroboration  of  his  other  papers.  But  apparently 
there  is  no  general  rule  as  to  the  giving  of  special  instructions, 
and  instructions  which  might  be  deemed  necessary  or  advisable 
in  the  case  of  a  certain  captain  or  a  certain  voyage  might  in  other 
circumstances  be  deemed  superfluous.  Presumably,  however,  a 
boarding  officer  would  in  any  case  call  for  them. 

Passenger  List 

There  is  apparently  no  general  law  or  rule  under  this  head. 
For  the  purpose  of  Emigration  or  Immigration  Statistics,  a  State 
may  well  require  of  shipowners  the  necessary  passenger  data  ; 
but  that  is  a  different  thing  from  declaring  that  such  data  must 
be  carried  on  the  ship.  For  emigrant  ships  or  for  ships  bringing 
aliens  into  the  country  each  State  will  doubtless  formulate  its 
own  laws,  and  some  States  may  of  course  require  the  information 
to  be  actually  on  board.  But  perhaps  even  this  requirement 
might,  in  practice,  be  regarded  as  fulfilled  if  the  list  were  sent  by 


"CORROBORATIVE"  PAPERS  267 

post  to  the  ship's  agents  and  lodged  by  them  with  the  Customs 
before  the  arrival  of  the  ship.  A  captain  might  or  might  not  have 
a  list  of  his  passengers  on  board,  for  anything  it  might  be  worth 
to  a  belligerent  boarding  officer.  Probably,  however,  if  only  for 
the  purser's  or  chief  steward's  purposes,  a  list  would  be  on  board, 
and  if  so  it  would  serve  as  a  corroborating  paper ;  but  if  it  was 
not  on  board  and  the  papers  were  in  other  respects  regular,  its 
absence  could,  in  ordinary  circumstances,  hardly  be  looked  upon 
as  a  serious  omission — unless,  indeed,  in  disregard  of  a  notifica- 
tion or  proclamation  requiring  it  to  be  carried.  It  is,  of  course, 
illegal  for  neutrals  to  afford  conveyance  or  transport-facilities  to 
the  naval  and  military  persons  of  belligerents  :  but  the  subject  is 
outside  the  present  consideration.  In  the  old  days,  when  military 
persons  in  belligerent  service  had  often  to  obtain  neutral  transport, 
the  subject  was  no  doubt  of  greater  practical  importance  than  it 
is  likely  to  assume  under  the  altered  conditions  of  to-day.  If, 
in  the  future,  boarding  officers  should  be  required  to  pay  special 
attention  to  passenger  lists,  it  may  be  supposed  that  special 
instructions  will  be  issued  accordingly. 

Postal  Correspondence 

For  the  purposes  of  maritime  warfare,  the  importance  or  value 
of  or  necessity  for  ship's  papers  is  primarily  if  not  solely  that 
of  the  testimony  they  afford.  The  captain  has  to  be  in  a  position 
to  furnish  belligerent  boarding  officers  with  certain  proofs  of 
nationality,  legitimacy  and  bona  fides  as  regards  ship,  cargo  and 
voyage ;  and  so  long  as  he  can  do  this  conclusively  or  satisfactorily 
the  exact  form  or  nature  of  the  proofs  is  apparently  not  material. 
It  is  true  that  in  certain  respects  he  can  hardly  provide  the 
proofs  required  without  producing  the  specific  papers  already  men- 
tioned ;  but  possibly  other  proofs  or  at  any  rate  further  evidences 
may  be  produced  which  may  be  none  the  less  important  in  that 
they  certainly  are  not  ship's  papers  in  the  technical  sense.  If  the 
captain  has  entirely  clean  hands,  if  he  has  nothing  to  conceal,  and 
has  no  object  in  concealment,  then  surely  he  will  be  anxious 
or  even  eager  to  furnish  the  utmost  proofs.  And  here  again  the 
establishment  of  the  postal  system,  both  inland  and  oversea,  has 


268  "CORROHORATIVK"   PAPERS 

created  conditions  differing  t^reatly  from  those  of  former  days. 
Tlie  date  of  a  vessel's  expected  arrival  at  her  port  is  nowadays 
known  accurately  or  approximately  from  the  day  on  which  she 
sails  for  it.  Letters  and  news[)apers  will  be  awaitin*^  the  officers 
and  members  of  the  crew  when  the  ship  arrives,  and  will  reach  them 
constantly  whilst  she  is  loading  and  until  she  sails.  Some  at  any 
rate  of  these  letters,  in  their  addressed  and  post-marked  envelopes, 
are  likely  to  be  in  possession  of  the  recipients.  Their  production 
should  serve  to  place  beyond  doubt  the  identity  of  the  vessel 
and  the  port  from  which  she  sailed.  If  the  captain  not  only 
produces  his  own  envelopes  or  wrappers  but  calls  on  his  officers 
and  crew  to  furnish  similar  testimony,  the  fact  will  be  evidence 
of  his  good  faith.  If  he  refuses  to  do  anything  of  the  kind,  his 
refusal  must  needs  create  suspicion.  Probably  also  he  will  have 
amongst  his  own  papers  dated  and  receipted  bills  from  his  last 
port  of  sailing  ;  and  these,  if  produced,  would  also,  if  his  story 
were  true,  be  valuable  corroboration.  If  a  captain  obstinately 
refuses  to  furnish  proofs  which  it  is  in  his  power  to  furnish,  the 
fact  would  not  tell  in  his  favour  with  a  Prize  Court,  in  the  matter 
of  costs,  even  if  release  were  ordered. 

The  foregoing  remarks  are  essentially  a  consideration  of  the 
papers  which  a  belligerent  boarding  officer  would  expect  to  find 
on  a  vessel  visited.  For  consideration  of  the  formalities  to  be 
observed  by  him  on  the  occasion  of  his  visit  and  search,  and  of 
the  various  offences  which  will  justify  him  in  detaining  the  ship, 
reference  must  be  made  to  treati.ses  in  which  these  subjects  are 
specially  dealt  with.  It  may,  however,  be  added  here  that  if 
papers  be  concealed  or  suppressed,  spoiled,  destroyed  or  falsified, 
the  fact,  if  discovered,  will  create  a  presumption  against  the  ship 
which  may  justify  her  detention.  Whether,  on  investigation  of 
the  facts,  it  will  also  be  found  to  justify  condemnation  will  be 
a  question  purely  for  the  Prize  Court.  If  the  Court  should  order 
the  ship's  release,  she  may  at  the  same  time  be  condemned  to 
pay  the  captors'  costs.  If  in  a  particular  case  the  captors  should 
be  found  to  have  detained  a  vessel  without  adequate  cause,  then 
the  captors  may  themselves  be  held  liable  for  costs  or  even,  in 
an  extreme  case,  for  damages.     But  "  in  cases  of  illegal  capture, 


"CORROBORATIVE"   PAPERS  269 

vindictive  damages  are  not  usually  given,  unless  where  the  mis- 
conduct has  been  very  gross,  and  left  destitute  of  all  apology. 
Great  indulgence  is  allowed  to  errors,  and  even  improprieties,  of 
captors,  where  they  do  not  appear  to  have  acted  with  malignity 
and  cruelty."  {Law  of  Maritime  Warfare,  Hazlitt  and  Roche, 
1854,  p.  305.) 

"  In  cases  when  further  proof  is  directed,"  says  Story  {Prize 
Courts,  1854,  p.  95),  "  costs  and  expenses  are  never  allowed  to  the 
claimant ;  nor  where  the  neutrality  of  the  property  does  not 
appear  by  the  papers  on  board  and  the  preparatory  evidence ; 
nor  where  papers  are  spoliated  or  thrown  overboard,  unless  the 
act  be  produced  by  the  captors'  misconduct,  as  by  firing  under 
false  colours  ;  nor  where  the  master  or  crew,  upon  the  preparatory 
examinations,  grossly  prevaricate;  nor  where  any  part  of  the 
cargo  is  condemned  ;  nor  where  the  ship  comes  from  a  blockaded 
port ;  nor  if  the  ship  be  restored  by  consent,  without  reserving 
the  question  of  costs  and  expenses.  But  in  all  cases  it  is  in  the 
discretion  of  the  Court  to  allow  the  captors  their  costs  and 
expenses ;  and,  in  general,  wherever  the  captors  are  justified  in 
the  capture,  their  costs  and  expenses  are  decreed  to  them  by  the 
Court,  in  case  of  restitution  of  property."  Story  was  writing,  of 
course,  in  the  days  when  enemy  non-contraband  goods  were  not 
protected  by  the  neutral  flag. 


INDEX 


A I  at  Lloyd's,   122 

Abolition  of  duties,    iS 

Acceptance  of  bills,    i8i 

Account  sale,    184 

Additional  premium  for  war  risks,  198 

Adjustment  of  Average,    131,  160 

Agreement  and  Account  of  Crew,  247,  256 

Alarms  of  war,   209 

Amalgamation  of  lines,  56 

American  lake  risks,   120 

Amsterdam,   23 

Ancient  conditions,   230,  ^242 

ports,  revival  of,  13 
Antwerp,    1 1 

a  mixed  port,  23 

congestion  at,   47 

ship  accommodation  at,   22,  23 
Articles.     See  Ship's  Articles 
Atlantic  Combine,   57 
Average,   144 

Adjusters,   1 3 1 

Adjustment,    131 

Bond,   150 

documents,    180 
Avonmouth,  9 

Baltic,  The,   128 
Bank  credits,   179 

advances,   179 
Barge  canals,  25 

ports,  23 

and  overside  discharge,  74 

size  of,  23,  24 

on  Thames,   24,  72 
Battles  of  the  ports,   12 
Berth,  on  the,  69,  89,  90 
Big  ships,  cheap  ships,  48 
Biggest  lines,  53 
Bilge  keels,  44 
Bill  of  Health,  226,  261,  263 

(Germany),  256 
Bill  of  Sale,  255 
Bills  of  Exchange,  4,    179,   i8r 

specimen,    180 

acceptance  of,    181,   182 

days  of  grace,    i8i,   183 

payment  of,    181,   183 

drawing  of,   178 

collateral  securities,  179,  183,  198 


Bills  of  Lading,  average  as  accustomed 

•45 
bankers'  advances,  82,   183 
captain's  copies,   178,  232 
"clean,"   177,   232 
delivery  "to  order,"  82 
discussed,  81,  83 
disposal  of,   178,   179 
endorsement  of,   £83 
exceptions,  83 
(Germany),   256 
negligence  clause  in,  87 
payment  of  freight,  84 
references  to,  198,  225,  226,  229,  231, 

234,  236 

several  to  the  set,  82 

seaworthiness,    149 

shipbrokers,  90 

signature  of,   85 

special  forms,  83 
Blockade,  80,  85,  238 

breach  of,   191,   193 
Board  of  Trade  Register.     See  Register 

measurement,  35 
Boarding  officer,  difficulties  of,   236 
Bonded  warehouses,   18 
Bonds,   insurance  of,    173 
Bottomry  Bond,   152 
Bremen  and  passengers,   15 
Bremerhafen,  20 
Bristol,    10,   II,  17 

Channel,  tides,  32 
British  Canals,  25 

Corporation,   124 

Register.     See  Register 
Bulk  cargoes,   18 
Burden,   33,  37 
Bureau  Veiitas,   125 

Calender  or  Packer,    176 
Calling  for  orders,  93 
Canals,  25 

and  railways,  26 

delays  on,  27 

dues,  39 

barges,  24 
Captain's    Copies,    178,    225,   230,    232, 
242 

instructions,  261,   266 


INDEX 


271 


Capture,  apprehension  of,   193 

costs,  268 

damages,  268 

risks,   197 
Cardiff,   1 3 

coastal  steam  lines,   73 
Cargo.     See  Goods 

book,   233 
Carrying  capacity,   45 
Certificate  of   Measurement    (Germany), 
256 

of  nationality,   255 

of  ownership,  226 

of  registration.     See  Register 

of  registry,  foreign,  255 

(safe  conduct),  249 

of  tonnage  (Germany),  255,  257 
Certificates  of  ship's  officers,  259 
Channel  ports,   13 
Chart,   264,  261 
Charter,  voyages  under,  91 
Chartering  at  The  Baltic,    130 

tramps  and,   91 
Charterparty,    77,   225,   261,   265 

and  capture-risks,    194 
Chemicals,   235,  240 
Cherbourg  and  passengers,    15 
C.I.F.,  244 
Clapham  Junction,  Antwerp  a,  47 

ocean,   10,   14 
Classification  of  ships,    121 
Clean  bill  of  lading,    177 
Clearance,  261,   262 

(Germany),   256 

of  ship,  90,    178 

from  quays,   46 
Closed  docks,   19,   20 
Clyde,  the,   11 
Coastwise  traffic,  72 
Cocquets,   239,  241 
Code  of  Signals,  127 
Collateral  securities,    179,    183,   198 
Collectivism  in  shipowning,  54 
Collision,  damage  caused  by,   172 

liabilities,   100 

insurance  of,  98 

warships  and  merchant  ships,   107 
Combine,  The  Atlantic,  57 
Command  of  the  sea,   220 
Commission-merchants,   175 
Compensation,  collision  damages,    100 
Competition  and  amalgamation,   56 

rails  and  coastal  steamers,  72 

tramps  and  liners,   71 

of  underwriters,    133 
Compulsory  pilotage,  33 
Conference,  of  lines  with  traders,  62 
Confidence  in  navy,  211 
Consignment  for  sale,    178 
Construction,  designs  of,  39 


Constructive  Total  Loss,  171 
"Content"  or  Manifest,  241 
Continent  and  passengers,  15 
Continental  canals,  25 

ports,   13 

view  of  ports,   17 
Contraband  goods,  trade  in,    189,   192 

seizure  of,    190 
Contracts  with  enemy,    i86 
Conventional  ton,   35 
Convoy,  2 1 3 

Copenhagen,  open  docks,  22 
Correspondence,   Officers',   262,  266 
Corroborative  papers,    260 
Cost  of  ship  insurance,  95 
Costs  (capture),  268 
Cranes,   18 

Crew  List.     See  Ship's  Articles 
Custom  of  the  port,  74 
Customs  entry,   90,    177,    178,   24O 
Cutlery,    235,   240 
Cuxhaven,  9 

Damaged  goods,  survey  of,   181 
Damages  (capture),  268 
Days  of  grace,  188,  207 
Deadweight  capacity,  34 
Decks,  special,  38 
Declaration  of  London,    192 

of  Paris,    206,   223,  229 
Deduction,  tonnage,  40 
Deep  ships,  cheap  ships,    51 
Deferred  Rebates,  62 
Delay  of  ships,  cost  of,  30 
Delivery  Order,   184 

"  to  order."     See  Bill  of  Lading 
Demurrage,  78 
Depression  in  trade,   5 
Depth,  demand  for,   29 
Difficulties  of  boarding  officer,   236 
Disbursements,  insurance  of,    169 
Discharge  of  cargo,   18 

in  London,  48 

overside,   19 
Displacement,  34 
Dock  management,   iS 

warrants,   184 
Docks  and  cranes,   18 

working  of,   20 

and  mud,  22 

bought  up,   16 

distance  from  centre,  21 

loss  of  water,   22 
Double  tides,  31 
Draft.     See  Bill  of  Exchange 
Dredging,   29 
During  subsequent  progress  of  hostilities, 

212 
Dutch  canals,   27 
Duties,  abolition  of,   18 


272 


INDEX 


Economics,  port,  a  i 

Eiiucation,  fret-,  5 

Kffcct  of  war  on  contract,    192 

Kncniy  property,   insuranci-  of,    195 

tradinj;  \vit)i,    iii(> 
Engine-room  Log,  257 
Entry,  Customs,  90,    177,    17H,   240 
Examiner  of  Claims,    159 
Exp>rt  of  merchaiulise,    175 
Exported  goods,  264 

F.C.  &  S.  clause,    197,    198 
K.O.a,  244 
F.l'.A.,   172 
False  papers,   228 
Fancy  goods,  2.^5,  240 
F'eeders  for  regular  lines,  69 
F'inancial  underwriting,    120 
Fire,  general  average,    147 

insurance,    19 
Fishguard,    13 
Flag,  the  national,  255 
Food  supplies,  3 

Royal  Commission  on,  217 
Foods,   7 

F'or  Orders,  93,   237 
Foreign  Enlistment  Act,   190,   192 

markets  essential,   2 
Freeboard,  41 
Free  ships,  free  goods,  223,  228 

water  clause,   74 
Freight,  95 

assessment  of,   177 

lien  for,   184 

insurance,   171 

payment  of,   84,   95,   184 

manifest,   243 

note,   177 

release,   184 

ton,  36 

war  clauses  in  contract,   193 
Freights  in  war,  213 
Frozen  meat  insurance,   173 

Gambling  policies,   168 
(jeneral  average  bond,  150 
deposits,    151 
Lloyd's  policy,   159 
refunds,    151 
sacrifice,   144 
contribution,    145,    148 
statement,   148 
what  it  is,   143 
and  passengers'  baggage,  149 
German  industry,    r,   5 
Germany  and  canals,   26 
her  prosperity  ours,   3 
and  co-operation,  55 
and  shipowning,   54 
health  certificate,  256 


Germany,  ships'  papers,    256 
Giant  ship])iiig  lines,  53 
Glasgow,    10,    II,    13 

bargeless,    23 

open  docks,   22 
Gold  coin  in   U.K.,  3 

insurance  of,    173 

remittances  of,    i8t; 

in   India,    186 
Goods,  Cargo  list.     See  Manifest 

liners,   48,   68 

in  bulk,    18 

sorting  to  marks,    18 

for  shipment,   19 

"average"  documents,    181 

customs  eniry,  177,   178 

discharge,  delivery  of,    18 

exchanged  for  goods,  3 

summary  of  documents,   245 

seaworthiness  (ship),  86 

exported  and  imported,  235,  246 

insurance  and  war  risks,   107,   201 

damage  by  grounding  or  collision,  172 

frozen  meat,   173 

gold,  bonds,  etc.,   173 

insurance,    171,    178 

memorandum,    173 

series,  173 

warehouse  risks,   173 

measurement  of,  96 

manufactured  and  industrial,  235,  246 

payment  for,   by  draft,    178 

shipment  of,    176 

survey  of  damaged,  181 

See  also  Invoices 
Grain,  sales  to  arrive,  93,  237 

shipments  "for  orders",  93,  237 
Great  Western  Railway  and  passengers,  1 5 
Grimsby,    13 
Gross  Register,  37 

tonnage,  deductions,  40 
Grounding,   173 

risk  of,  20 

and  stranding,    163 
Guarantee,  National,   216,   219 

Hague  Conference  and  days  of  grace,  187 

and  mail  bags,  231 
Flamburg,    10 

a  mixed  port,   23 

open  docks,  22 
Hardware,  235,  240 
Harvests,  their  effects,  4 
Havre  and  passengers,   15 
Health.     See  Bill  of  Health 

(>f  workers,   5 
High  values  for  insurance,   166 
Highways  of  shipping,   51 
Holland  and  canals,   27 
Holyhead,    13,   15 


INDEX 


273 


Homogeneous  cargoes,  18 
Homeward  cargoes,   ■246 
Homeward-bound  ships  and  war,  210 
Honour  Policies,  168 
Hostilities  and  shipping,  205 

ignorance  of,  206 

their  later  progress,   212 
Houndsditch  warehouses,   19 
Hull  insurance,   161 
Hull,  port  of,  10 

barges  or  keels  at,  24 
Humber,    13 
Hypothecation  of  documents,   179 

Ignorance  of  hostilities,   206 
Immingham,    13 

railway-owned,   1 7 
Immunities    and    days    of    grace,     187, 

207 
Imported  goods,   246 
Import  of  merchandise,   181 
Import  and  bills  of  lading,   182 

warehousing,    184 

sampling  and  inspecting,   184 

delivery  order,   184 

dock  warrants,   184 

remittance  of  proceeds,   185 

produce  brokers,  184 

sale,   184 

freight,   184 

account  sale,  185 

landing  account,   184 

warehouse  charges,   185 
Improper  navigation,  100 
Indemnity,  National,  212,  216,  219 
Indents,   175 
India,  exports  and  imports,   186 

gold  remittances,   186 
Individualism  in  shipowning,  54 
Industrial  goods,  235 

and  raw  material,  234 
Inland  insurance  risks,   174 
Inspecting  order,    184 
Institute  clauses,   134 
Institute  of  London  Underwriters,    133, 

198 
Instructions,  captain's,  261,   266 
Insurance,  National,  216,  219 
Insurance  of  war  risks,    196 

of  goods,   171 

of  goods,  provisional,    177 

of  disbursements,    169 

f.p.a.   172 

with  average,   172 

of  collision  liabilities,  98 

of  enemy  ships,   195 

gambling  policies,    168 
marine  and  fire,   172 

inland  risks,    174 
retained  lines,   119 


Insurance,  payment  of  losses,    119 

of  enemy  property,   195 

clauses,  174 

in  ancient  times,   112,   145 

of  ships,  161 

of  mammoth  ships,  49 

constructive  total  loss  171 

freight,  171 
Insurance   Association   for   War    Risks, 

202 
Interest  insured,  168 

on  loans,  and  war,   193 
Intermediate  steamers,  68 
International  Code  of  Signals,    127. 

Maritime    Conference,    Copenhagen, 

195 

Maritime  Committee,   103 

Mercantile  Marine  Co.,  57 
Invoices,   244,  225-227 

composition  of,   177 

suppliers',   177 
Ironware,  235,   240 

"Jerquing"  at  the  Custom   House,  90, 

241 
Jerusalem,  The,  J28 
Jetties,  19 

Keels  at  Hull,  24 
King's  Lock,  the,   18 
Regulations,  215 

Land  ports  and  water  ports,  23 
Landrail,  H.M.S.  and  Siren,  107 
Land-transport,  deamess  of,  9 
Latent  defect,  163 

Letters  of  Marque,  206,  of  Mart,  196 
Liabilities  for  collision,   100 
License  to  trade,  186,   251 

sailing,  247 
Life  liabilities,  98,    loi 

salvage,   142 
"  Lift  "  of  ships,  36 
Light  loadline,  44 
Limitation  of  liability,  104 
Liner  insurance,  98 
Liners,  how  understood,  68 

and  tramps ;  competition,  7 1 
Lines  and  their  classification,  56 

the  biggest,  53 
Liverpool,   10,   11 

a  railway  port,  23 

and  cranes,   18 

closed  docks,  20 

port  income,   17 

transit  trade,  75 
Liverpool  and   London  Steamship  Pro- 
tection Association,  204 
Liverpool  Salvage  Association,    137 

Underwriters'  Association,   134 

18 


274 


INDEX 


Lloyd's,   III 

Policy,  reptint,    155 
barratry,    158 
capture  risks,   158 
the  Memorandum,   158 
general  average,    159 
stranding,    159 

as  an  insurance  centre,    116 

underwriters,    1 16 

names,   116 

process  of  insuring,    117 

weekly  index,    1 17 

insurance  of  miscellaneous  risks,  1 18 

insurance  broker,    118 

and  enemy  insurance,   195 

as  a  news  centre,    115,   137 

agents,   115 

cable  code,  1 15 

indexes,   116 

secretarj'  of,    120 
Lloyd's  Register,   121 

committee,   122 
periodical  surveys,    122 
surveyors,    123 
ships  not  classed  by,   124 
Loading  brokers,  89 

on  the  berth,  69,  89,  90 
Leadline,  41,  44 

of  foreign  vessels,  45 
Loans  and  interest,  war,   193 
Locks,  lock  cuts,  20 
Log  book,   225,  226 

official,  257 

ship's,  257 

engine-room,   257 

refrigerating,  257 

(Germany),  257 
London,    ancient  rivals,  9 

site  of,  8 

England's  market,   10 

insurance  market,  119 

docks,   II 

import  cargo,   18 
closed,   20 

quays,  48 

a  barge  port,   24,   72 

and  dredging,  28,  29 

new  dock  for,  22 

port  of  many  uses,  10 

imports,   13 

and  cargo,  discharge,  48 

population  and  trade,    14 

and  railway  sidings,   24 

and  passengers,   15 

world's  trading  centre,    10 

the  coastwise  centre,    10 

increasing  manufactures  in,    14 

total  trade,    10 

and  custom  of  the  port,  74 

and  the  free  water  clause  74 


London  Bridge  and  tides,  31.  32 
London  and  N.    W.    Railway  and  pas- 
sengers, 15 
London  Salvage  Association,   136 
Lord  Campbell's  Act,    loi 
Loss  of  life  liability.     See  Collision 

Mail  bags,  231,   243 

Main  routes  of  shipping,  51 

Mammoths  and  high  values,    164 

Management  of  docks,    18 

Manchester,    10 

Manifest,  239,  226,  227,   233,  253 

imported  goods,  241,  242 

ship-brokers',  90 

(Germany),  256 
Manual  of  Prize  Law,   228,  261 
Manufactured  goods,  235 
Maritime  premium.    See  Bottomry  Bond 
Marking  of  packages,   176 
Marque  (Mart),  Letters  of,  206,    196 
Mate  s  cargo  book,   233 

receipt,  176,    177,   178,  232 
Measurement,  ship  tonnage,  34 

of  goods,  96 
Memorandum,   173 
Mercantile  "fighting-fleets",  55 
"Merchandise"  in  B/L,  240 
Merchants  and  war  risks,   199 
Mersey  Docks  and  Harbour  Board,   17 
Modem  conditions,  230,  242 
Monkey  boat,   24 
Moon  and  tides,  30 
Motor  lorries,   73 
Mud  difficulty,   22,  29 
Municipal  ports,   17 
Muster  roll,  225,  226,  247,  256 
Mutual  insurance  associations,  99 

insurance  and  war  risks,  201 

National  Flag,  255 

National  Guarantee,   216,   219 

Indemnity,  216,  219 

Insurance,   216,  219 
Naval  Prize  Act,  215 

Discipline  Act,  215 
Navigable  channels,  21,  28 
Navigation,  training  walls,  8 
Neap  tides,  30 
Neaping  of  ships,  32 
Neglect  of  canals,  25 
Negligence  clause,  87,   149 

Government  contracts,  80 
Net  Register,  37 
Neutrality,  Proclamation  of,   190 
New  scheme  of  ship  insurance,   165 
News  of  shipping,  254 

Ocean  and  coastal  steamers,   16 
highways,   5 1 
traders,  size  of,  49 


INDEX 


275 


Officers'  Certificates,  259 
Official  B.T.  measurement,  36 

log,  257 

number,  33,  253 

ton,  35 
Open  docks,   19 

quays,   19 

or  jetties,  construction  of,   23 
Order,  delivery  to,  82,  227 
Orders,  ships  for,  93,  237 
Out-ports,  9 

Outward-bound  ships  and  war,  209 
Outward  cargoes,  246 
Over-insurance,   1 70 
Overloading,  penalty  for,  45 
Overside  discharge,  19,   74 
Ownership  and  registration,  33 

Packages,  marking,  176 
Packer  or  calender,    176 
Papers.     See  Ships'  papers 
Paris.     See  Declaration  of  Paris 
Particular  average,   144,    172 

on  ships,   162 
Passenger  factor,   14 

list,  226,  261,  266 

steamers  and  cargo,   15 

vessels  and  cargo  vessels,  48 
Passengers'  baggage,  general  average,  149 
Passengers  and  London,   15 
Passing  of  entries,  90,  177,  178,  240 
Passport,   225,  247 
Patriotism  and  shipowners,  208 
Payment  of  losses  and  averages,  160 

for  goods,   178 
Perils  "  on  "  and  perils  "  of"  the  seas,  82, 

88 
Permit  to  trade,  226 
Pierpont  Morgan  Combine,  57 
Pilotage,  compulsory,   33 
Piracy  excepted,   197 
Plimsoll  Mark,  41 
Policy  and  clauses,  174 

and  war  risks,   197 

where  payable,    179 

proof  of  interest,   168 
Population  and  trade,  2 
Port  of  London  Authority,   12,  16 
Port  schemes,  21 

and  ship,   1 1 

dues.     See  Tonnage  dues 

of  Registration,  33 
Portland,  tides,  31 
Ports,  their  origin,  6 

access  from  sea,  8 

access  from  land,  8 

the  world's  ford-towns,  9 

at  rivers'  mouths,  9 

and  passenger  factor,   14 

and  incomes,  j6 


Ports,  how  viewed  on  Continent,   17 

municipal,    1 7 

and  Public  Trusts,  17 

systems,   1 9 

congestion  of,  47 

stepping-stones,  25 
Position  of  the  shipowners,  208 
Postal  correspondence,  262,  266 
P.PJ.  policies,  168 
Primage,  84,   143 
Privateers,  206 

Prize  courts,  ancient,  224,  225 
Proclamation  of  days  of  grace,   187 

of  Neutrality,  190 
Public  loans,  interest  during  war,   193 
Pumping-up  docks,  22 

Quays,  congestion  of,  47 

Railway  depots,   19 

truck,  capacity  of,  46 

ports,    13,  23 
Railways,  the  coming  of,  9 

and  canals,  26 

and  passengers,  15 

and  ports,   17 
Rates  of  freight,  95 

Raw  material  and  industrial  goods,' 234 
Rebates,  shipping  or  freight,  62 
Refrigerating  log,  257 
Register   of  British   shipping,    33,    247- 
255.  225-6 

certificate,  253 

of  classification,  Lloyd's  Register,  121 
Registration,  National,  33 
Regular  traders,  68 
Re-insurance,   119 
Remittance  of  sale  proceeds,   185 
Report  inwards,  241 
Rings,  shipping,  62 
Risk  of  capture,   194 
River  fords,  7 

and  trading  side,  21 
Rivers  an  obstacle,  8  * 

and  canals,   26 
Royal  Albert  Dock,  22 
Royal  Commission  on  Canals,  25 

on  Shipping  Rings,  63 

on  Food  Supplies,  217 
Running- Down  Clause,   106,    163 

Safe  Conduct  Pass,  249 
Sailing  License,  247 

ship,   75 

routes,   75 

under  convoy,  213 
Salvage,   140 

by  and  of  H.M.  Ships,    142 

property  salved,    140 

salvage  award,    141 


276 


INDEX 


Salvage,  life,    142 

dislrihution,    138 

contracts,    137 

operations,   135 

statements,   139 
Salvage  Associations,    136 
Sampling  order,    1H4 
San  Francisco,  y 
Schiffs'l'ai^ebuch,  259 
Sea-letter,   125,    226,   247 
Sea  Voyage  IJook  (Germany),  256 
Seaworthiness,  85,    149 
Securities  insurance,   173 
Shelter  decks,   38,  43 
Ship,  clearance  of,    178 

manifest,    178 

and  the  port,    1 1 

brokers,  88 

tonnage,  36 

clearance  of,  90 

lost  or  not  lost,  95 

insurance,   161 

latent  defect,   163 

damages,  82 
Ships'  Articles,  256,  226,  247 

papers  in  war,  223 
corroborative,  260 
(Germany),  256 

falsification  of,    suppression   of,    etc., 
268 

register.     See  Register 
Ships'  Officers'  Certificates,  259 
Ships,  instruments  of  trade,   1 1 

employment  of  in  war,   213 

when  war  breaks  out,  209 

classification  of,  121 

"for  orders,"  237,  93 

ownership  and  registration,  33 

risks  insured  against,  162 

particular  average,   162 

high  values  for  insurance  of,  164,  166 

new  method  of  insurance  of,   165 
Shipowners  and  London  charges,  74 

and  patriotism,  208 

their  position,   208 
Shipowners'  collision  liabilities,    loo 
Shipowning,  collectivism  and  individual- 
ism, 54 
Shipping  lines  classified,  56 

main  routes  of,  51 

and  hostilities,  205 

generally,  in  war,  208 

amalgamations,  56 

combine,  57 

rings,  62 

trust,   57 

conferences,  62 

documents,   179 

news,  254 


Shipping  Exchange,   129 

Shore  clearance,  46 

Shortage  of  supplies,  217 

"Sif,"  244 

Signal  Code,   127 

Siren  and   H.M.S.  Landrail,    107 

Size  and  cheapness,   50 

and  safety,   49 

limits  of,   49 
Sorting  and  delivery,   74 
Southampton,   10,  13 

railway-owned,    17 

tides,  3! 

and  passengers,   15 
South  African  shipping  ring,  62 
South-VVestern  Railway  and  passengers, 

•5 

Spanish  requirements,   244 
Special  designs  of  construction,  39 

insurance  clauses,   174 
Speculative  insurance,   168 
Speed  of  tramps,  70 
Spoil,  excavation  and  removal  of,  22,  23 
Spring  tides,  30 
Stowage,  43,  95 

plan,  69,   233 
Stranding  and  grounding,   163 
Suez  Canal  measurement,  39 

tonnage  through  the,  50 
Summary  re  Cargo  Documents,  245 
Super-decks,   38 
Suppliers'  invoices,   177 

of  food,   217 
Supplies,   176 

Surrey  Commercial  Dock,   22 
Survey  of  Damages,  181 

Tea-market,   10 
Thames  barges,  24,  72 

Conservancy,   16 

Embankment,  28 

in  ancient  times,  8 
Through  bills  of  lading,  69 
Tidal  docks,    19,   22 
Tide  in  Bristol  Channel,  32 

range  of,  31,  32 
Tides,  the,  28,  30 
Tilbury,  9 
Ton  and  tun,  35 
Tonnage  certificate  (German),  255,  257 

dues,  payment  of,  39,  40 

measurement,   34 
To  order,  delivery,  82,   227 
Trade  and  wealth,  5 

and  population,   2 

cause  of  war,   2 

civilising  influences  of,  6 

effect  of  war  on,  212 

is  barter,  3,  4 

permit,  226 


INDEX 


277 


Trade,  tracks,  inland,  6 

weapons  of,  6 

what  it  is,    i 
Trading  contracts  and  war,   192 

license,   186,  251 

side  of  river,  21 

with  the  enemy,   186 
Training  walls,  8,  28 

and  tides,  32 
Tramp  insurance,  99 
Tramps,   70 

and  liners,  competition,  71 

and  their  work,  91 

and  tramp-owning,  56 

chartering  of,  91 

speed  of,  70 
Transit  sheds,   18 

at  Liverpool,  75 
Travellers,   1 5 

Treasury  Committee  on  National  Insur- 
ance, 220 
Trinity  House,   16 

Under-deck  tonnage,  37 
Underwriters,    classification  of  voyages, 
160 
and  brokers,   118 
Underwriters'  Institute,   133 
Underwriting,  closing  of  risks,  161 


Underwriting;  financial,   120 

competition,   133 
Uninsured  ships,  95 
Unseaworthiness.     See  Seaworthiness 
Up- town  warehouses,   19 

Voyages  under  charter,  91 

Wager  policies,   168 
War  alarms,  209 

and  shipping  generally,  208 

and  ships'  papers,  223 

risks  insurance,   196,   197 

risks  and  Insurance  Associations,  202 

caused  by  trade,   2 

and  freights,  213 
Warehouses,  Bonded,  18 

up-town,  19 

certificates,   184 
Water  transport,  cheapness  of,  9 
West  Smithfield,    19 
Wharves,  24,  72 
When  war  breaks  out,  209 
White  Star  Co.  and  passengers,  15 
Workers  and  national  wealth,   5,    14 
Wrecks  and  salvage,   134 

York- Antwerp  Rules,   145,   150 


CAMBRIDGE:   PRINTED   BY  JOHN   CLAY,    M.A.   AT  THE   UNIVERSITY    PRESS 


THE 

CAMBRIDGE 

NAVAL     AND     MILITARY     SERIES 


General  Editors 

Julian  S.  Corbett,  LL.M.,  F.S.A.,  of  Trinity  College  and 
the  Middle  Temple,  Lecturer  in  History  to  the  Royal  Naval  War 
College, 

and 

H.  J.  Edwards,  C.B.,  M.A.,  Fellow  and  Tutor  of  Peterhouse  and 
Colonel  Commanding  the  Cambridge  University  Contingent,  Officers 
Training  Corps. 

Having  regard  to  the  increasing  demand  in  both  Services 
for  standard  w^orks  on  naval  and  military  subjects,  and  to  the 
fact  that,  in  response  to  the  growing  recognition  of  their  import- 
ance and  interest  on  all  sides,  such  subjects  have  been  definitely 
included  in  the  curriculum  of  the  University,  the  Syndics  of  the 
Cambridge  University  Press  have  decided  to  publish  a  Naval 
and  Military  Series. 

The  object  of  this  Series  will  be  to  meet  the  needs  of 
students  both  in  and  out  of  the  Services,  as  well  as  those  of  the 
general  reader.  The  more  technical  books  will  be  concerned 
with  strategy,  tactics,  geography,  map-reading,  armament,  ad- 
ministration, combined  operations  and  the  economics  of  war. 
The  volumes  of  a  less  technical,  or  non-technical,  character  will 
deal  with  the  wide  range  of  subjects  that  appeal  to  all  who  take 
a  serious  interest  in  Naval  and  Military  affairs,  including  studies 
of  separate  campaigns,  biographies  of  commanders  and  statesmen 
distinguished  in  the  conduct  of  war,  the  history  and  antiquities 
of  the  Navy  and  Army,  and  the  political  aspects  of  Imperial 
Defence. 


It  is  hoped  to  secure  as  authors  of  the  several  volumes 
writers  whose  practical  experience,  or  whose  close  study  of  the 
subjects,  establishes  a  claim  to  recognition  and  acceptance. 
Every  endeavour  will  be  made,  as  occasion  arises,  to  meet  the 
needs  of  both  Services  by  the  publication  of  volumes  dealing 
with  particular  questions  of  immediate  importance. 


Now  ready. 

Naval  and  Military  Essays.  Papers  read  at  the  International 
Historical  Congress,  19 13.  Edited  by  Julian  Corbett,  LL.M.,  and 
H.  J.  Edwards,  C.B. 

Ocean   Trade   and    Shipping.     By  Douglas  Owen,  Barrister-at- 

Law,  Lecturer  at   the  Royal   Xaval  War  College  and  at  the  London  School 
of  Economics. 


In  preparation. 

The  Navy  in  the  ^Var  of  1739 — 48.  [Two  volumes.]  By  Captain 
}L  W.  Richmond,  R.N. 

Maritime   International   Law.     By  A.  Pearce  Higgins,  M.A., 

LLD.,  of  Lincoln's  Inn,  Barrister-at-La\v,  Lecturer  at  Clare  College,  Cam- 
bridge, at  the  London  School  of  Economics  and  at  the  Royal  Naval  War 
College. 

The  Italian -Turkish  War.     By  Major  H.  H.  Wade. 

Strategy  for  Englishmen.     By  Brevet  Lieut.-Colonel  W.  D.  Bird, 

D.S.O. ,  /.  s.  c,  The  Queen's. 

From  Bull  Run  to  Port  Republic,  1861 — 2.  By  Lieutenant- 
Colonel  W.  K.  ScHARLiEB,  late  5th  Cavalr>',  Director  of  Military  Studies  in 
the  University  of  Cambridge. 

Non-Regular  v.   Regular  Troops  in  the   North  of  France, 

1870— I.  By  Brevet  Lieutenant-Colonel  L.  J.  BOLS,  D.S.O.,  /.  s.  c,  The 
Devonshire  Regiment. 


^  I  Cambridge    University   Press 

Fetter  Fane,  London :    C.  F.  Clav,  Manager 


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